Iceberg Research short American Resources, says ‘close to running out of money’

Iceberg Research is short American Resources, saying "the company is dangerously close to running out of money." "American Resources’ CEO Mark Jensen and president Thomas Sauve were sued in the past for mismanaging investment funds, negligence, and failing to follow through on debt guarantees. Similar things are happening at AREC. Around $2M was looted from the company’s coffers after delinquent loans were bought from related parties between 2017 and 2021. They are all completely worthless at this point," the short seller said in a recently published report. "The metallurgical coal miner grossly underestimates its operating costs… The company has also continuously failed to reach its production objectives… AREC chases fads and has built a hodgepodge of unrelated businesses: crypto, a SPAC, and rare earth recycling. None of them have been successful. The company is dangerously close to running out of money… Adding to this headache is a recent lawsuit filed by Lexon Insurance, seeking to recover $25M, after AREC defaulted on $547,000 of surety bond premiums. The $25m represents 67% of AREC’s total asset position as of end-September."Reference Link