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FISHERS, IN - American Resources Corporation (NASDAQ:AREC), a supplier of raw materials to the infrastructure market with a current market capitalization of $53.38 million, has completed the sale of its subsidiary, American Infrastructure Corporation (AIC), to CGrowth Capital Inc. (OTC:CGRA), now operating as American Infrastructure Holding Corporation. According to InvestingPro data, AREC has faced significant challenges, with its stock declining over 47% in the past year. As part of the deal, AIC shareholders are set to receive approximately 60 million common shares and 10 million Series A Preferred shares of CGrowth Capital later this week.
The share distribution follows the exchange terms where each AIC shareholder will get 3.46073 common shares and 0.57679 Series A Preferred shares of CGrowth Capital for each common share held. The preferred shares have an initial conversion ratio of 1,256 common shares of CGrowth Capital. This exchange concludes the separation of AIC from American Resources Corporation, with the transfer agent expected to complete the process within the week. Subsequently, shareholders will see their new CGRA common and preferred stock in their brokerage accounts or registered directly with the transfer agent. InvestingPro analysis reveals that despite current challenges, analysts are projecting significant revenue growth of over 249% for the company in FY2025, with expectations of profitability this year. Discover 13 additional key insights about AREC with an InvestingPro subscription.
Mark Jensen, Chairman of American Resources Corporation, stated that this distribution is one of the final steps in completing the transaction. CGrowth Capital is also working with FINRA to officially change its name and ticker symbol to align with its new identity as American Infrastructure Holding Corporation.
American Infrastructure Holding Corporation focuses on providing raw materials, including steelmaking materials, to the infrastructure market. Their operations are based in the Central Appalachian basin and include metallurgical carbon, iron ore, and vanadium assets in Jamaica. The company aims to run a low-cost model to scale its assets and meet the demands of the growing infrastructure markets.
American Resources Corporation, on the other hand, is involved in the critical mineral supply chain, focusing on metallurgical carbon and iron ore, as well as critical and rare earth minerals for the electrification market and recycled metals. While the company is known for its low-cost business model and growth-focused strategy, InvestingPro data indicates significant financial challenges, including a high debt-to-capital ratio of 0.82 and current ratio of 0.13, suggesting potential liquidity concerns. For comprehensive analysis of AREC’s financial health and future prospects, access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
This news is based on a press release statement from American Resources Corporation and does not reflect any additional analysis or opinion.
In other recent news, American Resources Corporation has made several strategic advancements through its subsidiary, ReElement Technologies. The company has successfully closed a private capital round, securing a pre-money valuation of $150 million. This funding will be used to enhance their facilities in Indiana with new commercial-scale equipment, including a Bipolar Electrodialysis Unit, to optimize production and reduce costs. Additionally, American Resources has announced an extension of a bond purchase agreement, securing $150 million in bonds to further develop its Kentucky Lithium LLC complex, which focuses on producing battery-grade lithium and refining rare earth oxides.
ReElement Technologies has also boosted its rare earth refining capacity, capitalizing on China’s recent export restrictions on critical minerals. The company’s modular refinery platform is recognized as the only scalable solution in the U.S. for economically separating both heavy and light rare earth elements. In a move to strengthen its operations in Africa, American Resources appointed Tony Carroll to the board of ReElement Technologies Africa Ltd., leveraging his extensive experience in U.S.-Africa trade and policy.
Furthermore, American Resources unveiled a new leaching technology designed to extract rare earth elements from coal and mine waste, aiming to transform environmental challenges into valuable resources. This technology will be deployed across the company’s holdings and is available for licensing globally. These developments underscore the company’s commitment to enhancing its production capabilities and addressing the growing need for a secure supply chain of critical minerals in the United States.
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