American Resources Corp (NASDAQ:AREC) said its majority-owned subsidiary, Electrified Materials Corporation (EMCO), has completed its previously announced private placement, raising approximately $9.5 million in gross proceeds before fees and expenses.
The offering consisted of 378,200 shares of EMCO's Series A Convertible Preferred Stock, priced at $25 per share.
Under the terms of the offering, each preferred share is convertible into common stock based on a formula tied to the lesser of 85% of EMCO's initial go-public listing price, if such a transaction occurs, or a valuation based on a fully diluted market capitalization of $125 million at the time of a go-public transaction.
Maxim Group LLC acted as the sole placement agent for the offering.
EMCO is a majority-owned subsidiary of American Resources focused on recycling metals and minerals for advanced technology, commercial and defense markets.