American Acquisition Opportunity Inc. Announces Partial Exercise of Over-Allotment Option in Connection With Its Initial Public Offering

Rhea-AI Summary

American Acquisition Opportunity Inc. (NASDAQ:AMAOU) announced the closure of an additional 506,002 units from the partial exercise of the underwriter's over-allotment option related to its IPO. Each unit includes one share of Class A common stock along with half of a redeemable warrant, with each full warrant allowing the purchase of one share at $11.50. The units are now listed on the Nasdaq. The company aims to target land and resource holding companies for potential mergers or acquisitions. Kingswood Capital Markets managed this offering.

Positive

• Raised additional capital with the issuance of 506,002 units.
• Each whole warrant allows purchase of Class A common stock at $11.50, potentially enhancing liquidity.

Negative

• The company is still in search of its initial business combination target, indicating uncertainty in future operations.

FISHERS, IN / ACCESSWIRE / April 1, 2021 / American Acquisition Opportunity Inc. (NASDAQ:AMAOU)(the "Company") announced today that it has closed the issuance of an additional 506,002 units pursuant to the partial exercise of the underwriter's over-allotment option in connection with the company's initial public offering. The units are listed on the Nasdaq Capital Market ("Nasdaq") under the ticker symbol "AMAOU". Each unit consists of one share of the Company's Class A common stock and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Only whole warrants are exercisable and will trade. Once the securities comprising the units begin separate trading, shares of the Class A common stock and warrants are expected to be listed on Nasdaq under the symbols "AMAO" and "AMAOW," respectively.

The Company is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any business or industry, it intends to focus its search on land and resource holding companies, with the potential to create, support, and/or innovate for the new economy.

Kingswood Capital Markets, division of Benchmark Investments, Inc. acted as the sole book running manager for the offering.

The offering was made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from Kingswood Capital Markets, division of Benchmark Investments, Inc., Attn: Syndicate Department, 17 Battery Place, Suite 625, New York, New York 10004, by telephone at (212) 404-7002, by fax at (646) 861-4697, or by email at syndicate@kingswoodcm.com.

A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission ("SEC") on March 17, 2021. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance & Communications
(317) 855-9926

SOURCE: American Acquisition Opportunity Inc.

View source version on accesswire.com:
https://www.accesswire.com/638694/American-Acquisition-Opportunity-Inc-Announces-Partial-Exercise-of-Over-Allotment-Option-in-Connection-With-Its-Initial-Public-Offering

FAQ

What is the significance of the additional 506,002 units issued by American Acquisition Opportunity Inc.?

The additional units increase the company's capital raised during its IPO, which may facilitate future merger and acquisition activities.

What does the over-allotment option mean for AMAOU's IPO?

It allows underwriters to issue more shares than originally planned, which can optimize the offering size and liquidity.

How does the exercise of warrants impact American Acquisition Opportunity Inc.?

The exercise of warrants can increase the number of shares outstanding, affecting shareholder dilution but potentially raising additional funds.

What industries is American Acquisition Opportunity Inc. targeting for acquisitions?

The company intends to focus on land and resource holding companies as part of its growth strategy.

When was the registration statement for AMAOU's IPO declared effective?

The registration statement was declared effective by the SEC on March 17, 2021.