American Resources Says SPAC Vehicle Reaches Merger Agreement With Royalty Management, Plans Nasdaq Listing

American Resources Corporation (NASDAQ:AREC) announced that its sponsored Special Purpose Acquisition Vehicle (SPAC) has entered into a merger agreement with a next-generation royalty company that will result in the combined listing of the company on the Nasdaq.

The deal will see American Acquisition Opportunity Inc (AMAO) merge with Royalty Management Corp and change its name to Royalty Management Company. The resulting company will continue to be based in Fishers, Indiana.

The combination values ​​RMC at an implied pro forma enterprise value of $111 million, priced at $10 per share, assuming there is no buyout by AMAO shareholders, the company said. . Both boards have approved the deal, which is expected to take place in the fourth quarter of 2022.

The transaction will result in gross proceeds of approximately $16 million for RMC, also assuming no redemption by AMAO shareholders and before payment of transaction costs.

READ: American Resources completes first phase of commissioning of rare earth materials and battery plant in Indiana

“Our goal for AMAO was to partner with a cash flow dynamic company that did not require complicated or highly dilutive financing as part of the de-SPAC process in order to thrive on its own as a public company” , said AMAO CEO Mark. Jensen said in a statement.

“We also wanted to invest in a business that understood the importance of generating strong returns in today’s market without the immediate need to raise capital, while having a vision for how to grow the business as the business evolves. of the global economy and markets. RMC is fitting this mold with the way it is transforming the royalty industry, focusing on current cash flow while creating a wide funnel of future long-term royalty streams. term in industries in transition,” added Jensen.

RMC and AMAO plan to hold a joint conference call with investors at 10:30 a.m. ET on July 7, 2022, to discuss the proposed transaction. Interested parties can call 1-877-407-4019 in the United States.

American Resources is a next-generation, environmentally and socially responsible supplier of high-quality raw materials for the new infrastructure market. It has a growing portfolio of operations located in the Central Appalachian Basin of eastern Kentucky and southern West Virginia, where deposits of premium metallurgical carbon and rare earth minerals are concentrated.

Contact Andrew Kessel at [email protected]

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Valerie J. Wallis