American Resources Corp 8-K, filed Jan 27, 2021
American Resources Corp (AREC)
8-K
2021-01-27
For: 2021-01-27
View Original
Added on
April 06, 2026
About this 8-K
American Resources Corp filed this 8-K on January 27, 2021.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report (Date of Earliest event Reported): January 27,
2021
AMERICAN RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
|
Florida
(State
or other jurisdiction
of
incorporation)
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000-55456
(Commission
File
Number)
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46-3914127
(I.R.S.
Employer
Identification
No.)
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12115
Visionary Way, Suite 174, Fishers Indiana, 46038
(Address
of principal executive offices)
(317)
855-9926
(Registrant’s
telephone number, including area code)
________________________________________________
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (See: General Instruction
A.2. below):
[
]
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[
]
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act
(17CFR240.14a-12)
[
]
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act
(17CFR240.14d-2(b))
[
]
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17CFR240.13e-4(c))
Item 7.01. Regulation FD Disclosure
On
January 27, 2021, American Resources Corporation (or the
“Company”) issued a press release announcing
that it has secured two new credit
facilities that can be drawn against and are backed by inventories
and accounts receivables to provide the Company added
flexibility.
The information presented in Item 7.01 of this Current Report on
Form 8-K and Exhibit 99.1 shall not be deemed to be
“filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or otherwise subject to the liabilities of that
section, unless the Company specifically states that the
information is to be considered “filed” under the
Exchange Act or specifically incorporates it by reference into a
filing under the Securities Act of 1933, as amended, or the
Exchange Act.
A copy
of the press release is attached as Exhibit 99.1 hereto and is
incorporated herein by reference.
Item 9.01.
Financial Statements and
Exhibits.
The
following exhibits are attached hereto and filed
herewith.
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ExhibitNo.
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Description
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Press Release
Dated January 27, 2021
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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American Resources
Corporation
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Date: January 27,
2021
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By:
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/s/ Mark C.
Jensen
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Mark C.
Jensen
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Chief Executive
Officer
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Exhibit 99.1
American Resources Corporation Enters into New Non-Dilutive Credit
Facilities for up to $10 Million
Credit facilities are backed by inventory and accounts receivables
to provide added flexibility as it expands carbon production at its
various complexes
Strength of balance sheet enables Company to access additional
low-cost, non-dilutive forms of financing structures
January 27, 2021 | Source: American Resources
Corporation
FISHERS, INDIANA / ACCESSWIRE / January 27, 2021
/ American Resources
Corporation (NASDAQ:AREC)
(“American Resources” or the “Company”), a
next generation and socially responsible supplier of raw materials
to the new infrastructure marketplace, today announced that it has
secured two new credit facilities that can be used to draw against
inventories and accounts receivables. The credit facilities can be
utilized at the Company’s discretion to drive revenues at its
Perry County Resources, McCoy Elkhorn and Wyoming County complexes
and provide additional flexibility as it executes upon its growth
objectives. With an initial ability to draw up to $10 million in
expansion financing, both facilities have provisions that enables
them to be increased as the Company expands its production and
revenue base.
The credit facilities will enable American Resources to further
expand its production from American Carbon, American Rare Earth and
American Metals while still ensuring a strong liquidity position.
The total cost of the facilities are forecasted to represent one of
the lowest costs of capital achieved to date for the Company since
formation over five years ago. For the inventory facility, the
Company is able to draw 80% of the inventory value at a cost of 2%
for up to each 120 days outstanding and is subject to standard
terms and conditions of the agreements. For the accounts receivable
facility, the Company is able to draw 90% of the accounts
receivable value at an equivalent 8% APR per year and is subject to
standard terms and conditions of the agreements.
Kirk Taylor, Chief Financial Officer of American Resources
Corporation, commented, “Being in a position to enter into
two traditional credit agreements in today’s market
environment is a testament to the strength of our Company’s
financial position and balance sheet. The attractiveness of these
credit facilities is that they will result in no equity dilution to
our shareholders, they are a low-cost form of capital, provide the
Company with additional flexibility as it ramps its production
growth, and only incurs interest when, and if, we draw against them
at our option. Being able to secure these credit financing
facilities opens up additional opportunities to expand our
production base at a time when we are seeing the increased demand
for our infrastructure related products and with steel prices on
the rise. Adding this type of flexibility into our unique,
innovative and low-cost operating model will allow us to maximize
the return to our shareholders while also enabling us to further
our mission of creating additional, sustainable and quality jobs in
the communities in which we operate.”
American Resources is constantly evaluating opportunities to
minimize cost of capital as well as minimize shareholder dilution.
These credit facilities supplement the Company’s already
strong capital position and will be utilized to expand revenue and
cash flow throughout 2021. With these flexible credit facilities
in-place, and given the Company’s current balance sheet
strength, the Company does not anticipate the need to access the
equity markets to raise additional capital to execute on its
current growth plan.
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. 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.
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
Company Contact:
Mark
LaVerghetta
317-855-9926
ext. 0
Vice
President of Corporate Finance and Communications