American Resources Corporation (NASDAQ:AREC) said its final convertible debt holder Golden Properties Ltd has elected to convert all of their Senior Convertible Debentures due March 31, 2023, to shares of class A common stock in a move that reduces the company’s debt by more than $9 million and eliminates the last of its convertible debt.
In a statement, American Resources said that Golden Properties will increase its long-term equity position in the company's common stock through the conversion of the balance of its convertible debt, amounting to approximately $9.9 million, resulting in approximately 9.4 million shares issued to the shareholder.
Golden Properties was an original investor in the company and has increased its ownership steadily over time through additional investment, American Resources added.
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American Resources CEO Mark Jensen highlighted the company’s great working relationship with Golden Properties, a shareholder since its inception.
“We recently came to an agreement to increase their equity stake in American Resources Corporation (NASDAQ:AREC) through this conversion of their convertible debt to common stock, which allows us to not only further strengthen the capitalization structure of the company by significantly reducing its debt outstanding but also showcases the confidence in our company by materially increasing their equity position,” he commented.
American Resources is a next-generation, environmentally, and socially responsible supplier of high-quality raw materials to the new infrastructure market.
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