American Resources Corporation Announces Board Authorization for Stock Repurchase Program

Rhea-AI Summary

American Resources Corporation (NASDAQ:AREC) has authorized a share repurchase program for up to $10 million in stock. This initiative reflects the company's commitment to enhancing shareholder value and confidence in its market opportunities, particularly in its American Carbon and ReElement Technologies divisions. The program allows for repurchases through various means, subject to market conditions, and will expire on September 15, 2023. The management aims to leverage its financial flexibility to invest in long-term growth while maintaining streamlined operations.

Positive

• Stock repurchase program of up to $10 million authorized, aimed at enhancing shareholder value.
• Management displays confidence in market opportunities for American Carbon and ReElement Technologies.
• Repurchases allow for flexibility in timing and method, supporting corporate discretion.

Negative

• Potential dilution of shares if buyback does not occur as planned.
• The repurchase program's impact on cash flow and possible opportunity costs remain uncertain.

Up to $10,000,000 of stock is authorized to be repurchased at the discretion of management over the board

FISHERS, IN / ACCESSWIRE / August 29, 2022 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced that its Board of Directors has authorized a stock repurchase program (the "Share Repurchase Program") for up to $10,000,000 of its shares of common stock outstanding.

Kirk Taylor, Chief Financial Officer of American Resources Corporation commented, "Our special committee has been evaluating numerous initiatives that it believes will maximize shareholder value in the short term, medium term and long term. This plan is a reflection of the confidence we have in the market opportunities for both American Carbon and ReElement Technologies divisions, and our strategy to invest for long-term growth, which we believe is not properly reflected in the current market valuation. We have the financial flexibility to continue to execute our business plans, and believe that launching this stock buyback program reflects our confidence in the prospects of the businesses and provides us an opportunity to create value for our long-term shareholders."

Under the Shares Repurchase Program, the Company is authorized to repurchase shares through the open market, in privately-negotiated transactions, or otherwise in accordance with applicable federal securities laws. The specific timing and total amount of future stock repurchases will be determined by business, market and economic conditions, cash flow requirements, corporate and regulatory requirements, prevailing stock prices, and other considerations. Repurchases may continue from time to time, as conditions permit, until the number of shares authorized to be repurchased have been acquired, or until the authorization to repurchase is terminated or expires, whichever occurs first.

The share repurchase authorization will be used at management's discretion and will expire on September 15, 2023, unless further extended by the Board of Directors. The Share Repurchase Program may also be suspended, modified, or discontinued at any time and does not obligate the Company to acquire any amount of Class A common stock.

American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources Corporation works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy, while being able to scale its operations to meet the growth of the markets it serves.

About American Resources Corporation

American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

About ReElement Technologies LLC

ReElement Technologies LLC is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. American Rare Earth has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

Special Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.

PR Contact
Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co

Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com

RedChip Companies Inc.
Todd McKnight
1-800-RED-CHIP (733-2447)
Info@redchip.com

Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View source version on accesswire.com:
https://www.accesswire.com/713764/American-Resources-Corporation-Announces-Board-Authorization-for-Stock-Repurchase-Program

FAQ

What is the purpose of the stock repurchase program authorized by American Resources Corporation?

The stock repurchase program aims to enhance shareholder value and reflects management's confidence in future market opportunities.

How much stock is American Resources Corporation authorized to buy back?

American Resources Corporation is authorized to repurchase up to $10 million of its stock.

When does the stock repurchase program for American Resources Corporation expire?

The stock repurchase program is set to expire on September 15, 2023, unless further extended by the Board of Directors.

How will the stock buyback impact the stock price of American Resources Corporation?

While the stock buyback is intended to support stock price, actual impacts depend on market conditions and investor perception.

What divisions are highlighted in the stock repurchase program announcement by American Resources Corporation?

The announcement highlights the American Carbon and ReElement Technologies divisions as key areas of market opportunity.