American Resources receives unsolicited bid for American Carbon

American Resources has received an unsolicited bid for the assets of its wholly owned metallurgical carbon division, American Carbon, that included upfront cash, assumption of debt and a scaling royalty structure totaling an implied enterprise value of approximately $260M. The proposal was not accepted due to the duration and structure of the consideration payments, but the Company remains committed to maximizing the value for shareholders including the sale, lease or expansion of production from the company’s metallurgical carbon assets. The unsolicited bid included $12M in cash over the first six months, assumption of certain debts plus a structured royalty stream of up to $260M in implied enterprise value over a twelve-year period. The company said, “Consistent with its fiduciary duties and in consultation with advisors, American Resources’ Board of Directors and Strategic Committee determined that the proposal, as it its defined, is not in the best interest of American Resources’ shareholders. The Board of Directors and Strategic Committee of American Resources will evaluate all options and opportunities for its American Carbon division. Additionally, the Company is continuing to pursue the spin-off of its wholly owned ReElement Technologies division and growth of its American Metals division to support the growth of the electrified economy.”