American Resources Corp Enters Into A Binding Letter Of Intent To Sell Assets Associated To Its Deane Mining Complex; Represents A $20.6M Enterprise Value In The Form Of Upfront Cash, Royalty Interest And Replacement Of Environmental Reclamation Bonds
Portfolio Pulse from Happy Mohamed
American Resources Corporation (NASDAQ:AREC) has entered into a binding letter of intent to sell assets associated with its Deane Mining Complex. The deal represents a $20.6 million enterprise value, payable in upfront cash, ongoing quarterly cash payments, and the assumption of environmental reclamation bonds. The sale is part of the company's strategy to unlock shareholder value by selling non-core assets.
August 04, 2023 | 1:19 pm
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POSITIVE IMPACT
The sale of non-core assets by American Resources Corporation could potentially unlock shareholder value and streamline the company's operations, which may have a positive impact on the company's stock in the short term.
The sale of non-core assets is often seen as a positive move by investors as it can help a company to focus on its core operations and improve its financial health. In this case, the sale could unlock shareholder value and provide the company with additional capital, which could be used to invest in growth initiatives. This could potentially lead to an increase in the company's stock price in the short term.
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