American Resources Corporation (NASDAQ:AREC) has agreed to a registered direct offering worth $13 million, the company announced Wednesday.
The raw materials supplier will offer 5.3 million shares at a price of $2.50 per share. The offering is expected to close on Friday, the company said.
Kingswood Capital Markets, a division of Benchmark Investments Inc, is acting as exclusive placement agent for the offering.
READ: American Resources introduces new subsidiary American Rare Earth to extract metals in Kentucky
American Resources, based in Fishers, Indiana, is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. The company has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon deposits are concentrated.
Also on Wednesday, the company announced the launch of a new subsidiary, American Rare Earth LLC, to organize, consolidate, evaluate and develop its owned portfolio of high-quality, low-cost rare earth mineral sites.
The company's stock recently traded 56% higher to $2.54 a share in New York.
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