American Resources Corporation's American Infrastructure Corporation Closes Merger with CGrowth Capital, Inc
American Resources (NASDAQ:AREC) has announced the successful completion of its subsidiary American Infrastructure 's (AIC) merger with CGrowth Capital (OTC:CGRA). The merged entity will be renamed American Infrastructure Holding and plans to pursue an uplisting to a senior national exchange.
The merger, based on a December 30th, 2024 binding contract, positions AIC as a wholly-owned division of CGrowth Capital. Common shareholders of AIC will receive Series A Preferred Stock, convertible into common shares of the combined company at their discretion, with distribution scheduled for February 14th, 2025.
The company has previously received term sheets valuing AIC operations between $150 million to $280 million. The merger structure aims to reflect growth opportunities and achieve such value for the combined entity. The American Infrastructure team will assume management of CGRA, with former CGRA CEO Nick Link remaining on the board.
American Resources (NASDAQ:AREC) ha annunciato il completamento con successo della fusione della sua filiale American Infrastructure (AIC) con CGrowth Capital (OTC:CGRA). L'entità fusa sarà rinominata American Infrastructure Holding e prevede di cercare un uplisting su un mercato nazionale superiore.
La fusione, basata su un contratto vincolante del 30 dicembre 2024, posiziona AIC come divisione interamente controllata di CGrowth Capital. Gli azionisti comuni di AIC riceveranno azioni privilegiate di Serie A, convertibili in azioni comuni della società combinata a loro discrezione, con distribuzione prevista per il 14 febbraio 2025.
L'azienda ha precedentemente ricevuto documenti sulle condizioni che valutano le operazioni di AIC tra 150 milioni e 280 milioni di dollari. La struttura della fusione mira a riflettere le opportunità di crescita e a raggiungere tale valore per l'entità combinata. Il team di American Infrastructure assumerà la gestione di CGRA, con l'ex CEO di CGRA, Nick Link, che rimarrà nel consiglio di amministrazione.
American Resources (NASDAQ:AREC) ha anunciado la exitosa finalización de la fusión de su subsidiaria American Infrastructure (AIC) con CGrowth Capital (OTC:CGRA). La entidad fusionada será renombrada American Infrastructure Holding y planea buscar una cotización en una bolsa nacional de nivel superior.
La fusión, basada en un contrato vinculante del 30 de diciembre de 2024, posiciona a AIC como una división de propiedad total de CGrowth Capital. Los accionistas comunes de AIC recibirán acciones preferentes de Serie A, que se podrán convertir en acciones comunes de la empresa combinada a su discreción, con la distribución programada para el 14 de febrero de 2025.
La empresa ha recibido anteriormente documentos de condiciones que valoran las operaciones de AIC entre 150 millones y 280 millones de dólares. La estructura de la fusión tiene como objetivo reflejar oportunidades de crecimiento y alcanzar dicho valor para la entidad combinada. El equipo de American Infrastructure asumirá la gestión de CGRA, con el ex CEO de CGRA, Nick Link, manteniendo su puesto en la junta.
American Resources (NASDAQ:AREC)는 자회사인 American Infrastructure (AIC)와 CGrowth Capital (OTC:CGRA)의 성공적인 합병 완료를 발표했습니다. 합병된 단체는 American Infrastructure Holding으로 이름이 바뀌며, 고위 생태 거래소로의 상장을 추구할 계획입니다.
2024년 12월 30일의 구속력 있는 계약을 기반으로 한 이번 합병은 AIC가 CGrowth Capital의 완전 소유 부서로 자리 잡게 됩니다. AIC의 보통 주주들은 상환권이 있는 A 시리즈 우선주를 받게 되며, 이 우선주는 합병된 회사의 보통주로 언제든지 전환할 수 있습니다. 배포는 2025년 2월 14일로 예정되어 있습니다.
회사는 이전에 AIC 운영의 가치를 1억 5천만 달러에서 2억 8천만 달러로 평가한 조건서를 받았습니다. 합병 구조는 성장 기회를 반영하고 합병된 단체에 대한 가치를 달성하는 것을 목표로 합니다. American Infrastructure 팀은 CGRA의 관리를 맡으며, 전 CGRA CEO인 Nick Link가 이사회에 계속 남아 있습니다.
American Resources (NASDAQ:AREC) a annoncé l'achèvement réussi de la fusion de sa filiale American Infrastructure (AIC) avec CGrowth Capital (OTC:CGRA). L'entité fusionnée sera renommée American Infrastructure Holding et prévoit de rechercher une cotation sur une bourse nationale de premier plan.
La fusion, basée sur un contrat contraignant du 30 décembre 2024, positionne l'AIC comme une division entièrement détenue par CGrowth Capital. Les actionnaires ordinaires de l'AIC recevront des actions privilégiées de série A, convertibles en actions ordinaires de la société combinée à leur convenance, la distribution étant prévue pour le 14 février 2025.
L'entreprise avait précédemment reçu des documents conditionnels évaluant les opérations de l'AIC entre 150 millions et 280 millions de dollars. La structure de la fusion vise à refléter les opportunités de croissance et à atteindre une telle valeur pour l'entité combinée. L'équipe d'American Infrastructure assumera la direction de CGRA, avec l'ancien PDG de CGRA, Nick Link, restant au conseil d'administration.
American Resources (NASDAQ:AREC) hat den erfolgreichen Abschluss der Fusion seiner Tochtergesellschaft American Infrastructure (AIC) mit CGrowth Capital (OTC:CGRA) angekündigt. Die fusionierte Einheit wird in American Infrastructure Holding umbenannt und plant eine Listung an einer höheren nationalen Börse.
Die Fusion, basierend auf einem verbindlichen Vertrag vom 30. Dezember 2024, positioniert AIC als eine vollständig im Besitz von CGrowth Capital befindliche Abteilung. Die Stammaktionäre von AIC werden Vorzugsaktien der Serie A erhalten, die nach eigenem Ermessen in Stammaktien des fusionierten Unternehmens umgewandelt werden können, wobei die Verteilung für den 14. Februar 2025 geplant ist.
Das Unternehmen hat zuvor Bedingungen erhalten, die den Wert der AIC-Betriebe auf 150 Millionen bis 280 Millionen Dollar schätzen. Die Struktur der Fusion zielt darauf ab, Wachstumschancen widerzuspiegeln und diesen Wert für das fusionierte Unternehmen zu erreichen. Das Team von American Infrastructure wird die Geschäftsführung von CGRA übernehmen, wobei der ehemalige CGRA-CEO Nick Link weiterhin im Vorstand verbleibt.
- Merger completion provides framework for future financing and growth opportunities
- Previous valuations indicate potential worth between $150-280 million
- Planned uplisting to senior national exchange could increase visibility and liquidity
- Strategic positioning to capitalize on U.S. domestic infrastructure initiatives
- Previous structured transactions were deemed unacceptable by the Board
- Integration of management teams and operations may pose challenges
- Current OTC listing status until uplisting is achieved
Insights
This merger represents a strategic pivot that could significantly enhance shareholder value through multiple channels. The transaction's structure is particularly noteworthy for several reasons:
Strategic Positioning: The merger creates a pure-play infrastructure company at an opportune time, coinciding with increased federal focus on domestic infrastructure development. This timing could provide substantial competitive advantages in accessing government contracts and funding.
Financial Structure & Value Unlock: The deal's architecture is sophisticated, with the Series A Preferred Stock conversion feature providing flexibility for shareholders while maintaining strategic control. Previous term sheets valuing AIC between
Growth Catalyst: The planned uplisting to a senior exchange could dramatically improve access to capital markets and institutional investors, potentially reducing the cost of capital for future acquisitions. The company's focus on distressed asset acquisition in the infrastructure sector, combined with their royalty and leasehold production model, presents a scalable growth strategy with potentially lower operational risk.
Market Timing: The infrastructure sector is entering a potentially robust cycle, supported by federal initiatives and increasing demand for domestic raw materials. The company's diverse portfolio spanning metallurgical carbon, iron ore and titanium positions it well to capitalize on both traditional infrastructure and clean energy transitions.
The merger has been successfully completed based on the December 30th, 2024 binding contract announced on January 6th, 2025.
American Infrastructure Corporation is now publicly listed and a wholly owned division of CGrowth Capital, Inc, which will be renamed American Infrastructure Holding Corporation
The combined company plans to pursue an uplisting to a senior national exchange
FISHERS, IN / ACCESS Newswire / January 28, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company") announced that its partially owned subsidiary, American Infrastructure Corporation ("AIC"), a supplier of raw material to the infrastructure marketplace with a focus on iron ore, titanium and metallurgical carbon, has successfully completed its merger with CGrowth Capital, Inc. (OTC:CGRA) ("CGrowth Capital" or "CGRA"). In conjunction with the merger with CGRA, the Company has established a framework to support future financing for both organic growth and acquisitions within the infrastructure sector, in alignment with its overall business strategy.
Mark Jensen, Executive Chairman of American Infrastructure Corporation, commented, "Closing the previously announced binding agreement with CGrowth Capital represents a significant milestone for American Infrastructure and its shareholders. As a standalone public company focused on expanding its presence in the mining and infrastructure marketplace, our goal of building high-value royalty structures presents a substantial opportunity for both our shareholders and those of CGRA. We believe that, given the new administration's emphasis on energy and infrastructure growth, we are well-positioned to capitalize on the undercapitalized and distressed assets within the infrastructure marketplace. This is an opportune time to be a pure-play infrastructure company, especially with the increasing focus on domestic infrastructure initiatives in the United States. Our strategy remains centered on leveraging our royalty and leasehold production model, which enables us to generate cash flow by partnering with experienced local operators with a proven track record of success in the region. We are optimistic about the opportunities ahead in 2025 as we continue to grow the business. We also want to extend our gratitude to Nick Link and his team for their efforts establishing a strong platform like CGrowth Capital."
Common shareholders of American Infrastructure, as consideration for the merger, will receive a Series A Preferred Stock in exchange for their common shares, which can be converted into common shares of the post-merger, combined company, American Infrastructure Holding Corporation, at the holder's discretion. Per the previously established record date, for the distribution of shares of American Infrastructure Corporation to the underlying shareholders of American Resources Corporation, those investors will now receive there prorate Series A Preferred Shares of CGrowth Capital, Inc. on February 14, 2025.
Under the terms of the Agreement, American Infrastructure Corporation is a wholly owned subsidiary of CGrowth Capital, Inc., which will change its name to American Infrastructure Holding Corporation. The American Infrastructure team will assume management of CGRA and nominate new board members, with Nick Link, the former Chief Executive Officer of CGRA, remaining on the board of the combined entity. The previously existing operations and assets of CGRA will be spun-out of that entity concurrent with this transaction, leaving the operations of American Infrastructure Corporation as the sole operations of the combined entity.
American Resources has received multiple term sheets and letters of interest for structured transactions over the last year for the American Infrastructure Corporation operations, ranging in value from
About American Infrastructure Corporation
American Infrastructure Corporation is a raw material supplier to the infrastructure marketplace with a focus on metallurgical carbon, iron ore and titanium. Current operations are primarily focused on the extraction, processing, transportation, and distribution of coal for a variety of industries, with a primary focus on metallurgical quality coal to the steel industry. The company has six coal mining and processing operating subsidiaries in the metallurgical carbon industry located in Eastern Kentucky and West Virginia along with a substantial iron ore and titanium asset base in the mining region of Jamaica. For more information visit americaninfracorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About American Resources Corporation
American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.
Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.
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 CGrowth Capital Inc.
CGrowth Capital Inc. (OTC PINK:CGRA) is a public holding company for alternative and undervalued assets. The company is sector and industry agnostic and currently consists of two divisions including Mining and Sports Technology. The company is focused on investing in growth-oriented opportunities where the company's capital, expertise, and capabilities can help create significant added value for shareholders. For more information visit https://cgrowthcapital.com.
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.
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com
CGrowth Capital Inc. Contact
SOURCE: American Resources Corporation
View the original press release on ACCESS Newswire
FAQ
What is the value range of American Infrastructure according to previous term sheets?
When will AREC shareholders receive their Series A Preferred Shares from the merger?
What is the new name of the merged company following AREC's subsidiary merger with CGRA?
What happens to existing CGrowth Capital operations after the merger with AREC's subsidiary?
What type of shares will American Infrastructure shareholders receive in the merger?
