American Resources Corporation Sets Record Date of December 31, 2024 for Special Dividend and Closes Initial Investments of Private Funding for ReElement Technologies Corporation

Rhea-AI Summary

American Resources (NASDAQ:AREC) has announced a special dividend distribution of ReElement Technologies shares, with shareholders receiving 1 ReElement share for every 3 AREC shares held as of December 31, 2024. The distribution is scheduled for February 15, 2025. Additionally, ReElement Technologies has secured initial investments through two-year convertible notes bearing 12% annual interest, as part of a private financing round of up to $20 million. The notes are convertible at a $150 million pre-money valuation, equivalent to approximately $1.94 per AREC share.

Positive

• Secured initial investments as part of a $20 million private financing round
• Convertible notes offer 12% annual interest rate
• Pre-money valuation of $150 million for ReElement Technologies
• Special dividend distribution provides direct value to shareholders

Negative

• Potential dilution for shareholders through convertible notes
• Two-year lock-up period for the convertible notes

ReElement Technologies closes initial investments of its private investment round into ReElement from group of investors including members of management

American Resources is distributing 1 share of ReElement Technologies for every 3 shares of American Resources Corporation as of the Record Date

FISHERS, IN / ACCESSWIRE / November 14, 2024 / FISHERS, IN / ACCESSWIRE / November 14, 2024 / 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 modern infrastructure and electrification sectors, today announced a special dividend of shares in its wholly owned subsidiary, ReElement Technologies Corporation ("ReElement") ("Special Dividend"). The Special Dividend will be distributed on or about February 15, 2025 to shareholders of record as of December 31, 2024 ("Record Date").

Additionally, the Company is pleased to report that ReElement Technologies, a leading provider of high-performance refining capacity for rare earth and critical battery elements, has successfully closed on initial investments as part of its private financing. This initial investment is part of an ongoing private financing round with a rolling close of up to $20 million. The investments were structured as two-year convertible notes with a 12% annual interest rate. These notes can convert into common shares of ReElement Technologies at a pre-money valuation of $150 million, translating to approximately $1.94 per share of American Resources common stock, based on the common shares outstanding as reported in the last quarter.

Mark Jensen, CEO and Chairman of American Resources Corporation commented, "Positioning our divisions for growth and maximizing shareholder value is our top priority. ReElement Technologies is the most exciting venture I've ever been part of, and the opportunities to meet the demands of the electrified economy and strengthen national security through a reliable critical mineral supply chain are enormous. Our mission is clear: to set the global standard for refining critical minerals. We're incredibly proud of our team's achievements so far and the strong foundation we've built for future growth. As a standalone company, ReElement will be even better positioned to execute its business plan and formally launch our exceptional Board of Directors."

American Resources Corporation will be distributing one share of ReElement Technologies Corporation for every three shares American Resources owned as of the Record Date.

The Company has engaged VStock Transfer, LLC ("VStock") as its transfer agent and the special dividend will be handled by VStock. The planned Special Dividend shall be subject to compliance with applicable rules and regulations.

About ReElement Technologies Corporation

ReElement Technologies Corporation, a wholly owned subsidiary of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

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.

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
(908) 824 - 0775
arec@jtcir.com

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

Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View the original press release on accesswire.com

FAQ

What is the record date for AREC's special dividend of ReElement shares?

The record date for American Resources 's special dividend is December 31, 2024.

How many ReElement shares will AREC shareholders receive in the special dividend?

Shareholders will receive 1 share of ReElement Technologies for every 3 shares of American Resources (AREC) owned as of the record date.

When will AREC distribute the ReElement Technologies special dividend?

The special dividend will be distributed on or about February 15, 2025.

What is the conversion price for ReElement's convertible notes?

The convertible notes can convert into ReElement Technologies shares at a pre-money valuation of $150 million, equivalent to approximately $1.94 per AREC share.