American Resources Corp (NASDAQ:AREC) announced it has priced a $40 million private placement of Class A common stock at $5.10 per share.
Under the offering, the company will sell 7.84 million shares, or pre-funded warrants in lieu of shares, to several institutional investors.
The gross proceeds, before deducting placement agent fees and other estimated expenses, are expected to total approximately $40 million.
The offering is expected to close on or about October 16, subject to customary closing conditions.
Maxim Group LLC is acting as the sole placement agent for the transaction.
American Resources is a critical minerals company that develops, mines, processes, and recycles metallurgical carbon, iron ore, rare earths, and other essential materials to support steelmaking, electrification, and sustainable infrastructure markets.