American Resources Corporation Announces Record Date for Distribution of the Remaining Majority of American Infrastructure Corporation Shares
Rhea-AI Summary
American Resources (NASDAQ:AREC) has announced the completion of its American Infrastructure (AIC) spin-off through a special dividend distribution. Following an initial distribution on August 9, 2024, AREC will distribute the remaining majority of AIC shares to its shareholders. The distribution ratio is set at one AIC share for approximately every seven AREC shares held. Shareholders of record as of December 31, 2024, will receive their shares on or about February 14, 2025. This move will establish AIC as a standalone entity focused on being a diversified supplier of infrastructure raw materials.
Positive
- Completion of strategic spin-off to create focused, standalone infrastructure materials company
- Distribution of additional shareholder value through special dividend of AIC shares
Negative
- Dilution of AREC's asset base through separation of infrastructure business
Insights
The upcoming spin-off completion of American Infrastructure (AIC) from American Resources represents a strategic corporate restructuring that will impact shareholders' portfolios directly. The 1:7 distribution ratio for the special dividend means existing AREC shareholders will receive a meaningful ownership stake in the new standalone entity. This follows the initial distribution from August 2024, completing the separation of infrastructure raw materials business from AREC's core operations.
The February 2025 distribution timeline provides clarity for investors and allows for proper portfolio planning. For a micro-cap company with a market cap of
This corporate action carries important implications for market structure and trading dynamics. The record date of December 31, 2024, is strategically placed at year-end, which can impact tax considerations for shareholders. The ex-dividend date, typically one business day before the record date, will be important for trading positions. Investors should note that AREC shares will likely adjust downward to reflect the value of the distributed AIC shares, similar to how stocks typically decline by the amount of a cash dividend.
For simplified understanding: Imagine having a pizza cut into separate pieces - while you still own the same amount of pizza, each piece can now be valued independently, potentially leading to better overall value recognition in the market. This separation allows investors to choose which business they want to invest in, rather than being forced to own both through a single stock.
American Infrastructure Corporation is set to complete the process of becoming a standalone entity, focusing on being a diversified supplier of infrastructure raw materials
FISHERS, IN / ACCESSWIRE / December 20, 2024 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company") announced today that it will complete the spin-off of its subsidiary, American Infrastructure Corporation (or "AIC"), through a distribution of nearly all remaining shares of AIC currently owned by AREC. The Company previously announced its intent to spin-off AIC via a special dividend of shares ("Special Dividend"). A portion of those shares were distributed to the shareholder of American Resources Corporation on August 9, 2024. The next Special Dividend of AIC shares will be distributed to AREC shareholders on or about February 14, 2025 to shareholders of record as of December 31, 2024. American Resources Corporation will distribute one share of American Infrastructure Corporation for approximately every seven shares of American Resources Corporation owned as of that record date.
About American Infrastructure Corporation
American Infrastructure Corporation is a raw material supplier to the infrastructure marketplace with a focus on iron ore, titanium and metallurgical carbon. Current operations are primarily focused on the extraction, processing, transportation, and distribution of products that supply global steel industry for infrastructure growth. We own iron ore and titanium assets in Jamacia as well as six mining and processing operating subsidiaries in the metallurgical carbon industry located in Eastern Kentucky and West Virginia. For more information visit americaninfracorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About American Resources Corporation
American Resources Corporation (NASDAQ:AREC) 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 Indiana and 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
833-475-8247
arec@jtcir.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
When is the record date for AREC's American Infrastructure share distribution?
What is the distribution ratio for AREC's AIC share dividend?
When will AREC shareholders receive their AIC shares?
When was the first distribution of AIC shares completed by AREC?
What will be American Infrastructure 's business focus after the spin-off from AREC?
