American Infrastructure Merges with CGrowth Capital in Strategic $280M Value Deal
American Infrastructure (AIC), a subsidiary of American Resources (NASDAQ:AREC), has entered into a binding term sheet to merge with CGrowth Capital, Inc. (OTC PINK:CGRA). Following the merger, AIC will become a wholly owned subsidiary of CGRA, which will be renamed to American Infrastructure Holding .
The merger is structured as a tax-free exchange where AIC shareholders will receive Series A Preferred Stock, convertible into common shares of the post-merger company. The Series A Preferred Stock includes an anti-dilution provision, ensuring 92% ownership of common stock after twelve months.
AIC has previously received multiple LOIs for structured transactions ranging from $150 million to $280 million. The company operates six coal mining and processing subsidiaries in Eastern Kentucky and West Virginia, focusing on metallurgical carbon supply to the steel industry, along with iron ore and titanium assets in Jamaica.
American Infrastructure (AIC), una sussidiaria di American Resources (NASDAQ:AREC), ha firmato un accordo vincolante per fondersi con CGrowth Capital, Inc. (OTC PINK:CGRA). Dopo la fusione, AIC diventerà una sussidiaria interamente controllata da CGRA, che sarà rinominata American Infrastructure Holding.
La fusione è strutturata come uno scambio senza tasse, in cui gli azionisti di AIC riceveranno azioni privilegiate di Serie A, convertibili in azioni ordinarie della società post-fusione. Le azioni privilegiate di Serie A includono una clausola anti-diluzione, garantendo il 92% di proprietà delle azioni ordinarie dopo dodici mesi.
AIC ha ricevuto in precedenza diverse lettere di intenti per transazioni strutturate che vanno da 150 milioni a 280 milioni di dollari. L’azienda gestisce sei sussidiarie di estrazione e lavorazione del carbone nel Kentucky orientale e nella Virginia Occidentale, concentrandosi sulla fornitura di carbonio metallurgico per l’industria siderurgica, insieme a risorse di minerale di ferro e titanio in Giamaica.
American Infrastructure (AIC), una subsidiaria de American Resources (NASDAQ:AREC), ha firmado una hoja de términos vinculante para fusionarse con CGrowth Capital, Inc. (OTC PINK:CGRA). Tras la fusión, AIC se convertirá en una subsidiaria de propiedad total de CGRA, que será renombrada como American Infrastructure Holding.
La fusión está estructurada como un intercambio libre de impuestos en el que los accionistas de AIC recibirán acciones preferentes de la Serie A, convertibles en acciones ordinarias de la empresa posterior a la fusión. Las acciones preferentes de la Serie A incluyen una cláusula anti-dilución, garantizando el 92% de propiedad de las acciones ordinarias después de doce meses.
AIC ha recibido previamente múltiples cartas de intención para transacciones estructuradas que van de 150 millones a 280 millones de dólares. La empresa opera seis subsidiarias de minería y procesamiento de carbón en el Este de Kentucky y Virginia Occidental, centrándose en el suministro de carbono metalúrgico para la industria del acero, junto con activos de mineral de hierro y titanio en Jamaica.
American Infrastructure (AIC)는 American Resources (NASDAQ:AREC)의 자회사로, CGrowth Capital, Inc. (OTC PINK:CGRA)와 합병하기 위해 구속력이 있는 조건 시트를 체결했습니다. 합병 후 AIC는 CGRA의 전액 출자 자회사가 되며, 이름은 American Infrastructure Holding로 변경됩니다.
이번 합병은 AIC 주주가 합병 후 회사의 보통주로 전환 가능한 A급 우선주를 받는 세금 면제 교환 구조로 되어 있습니다. A급 우선주에는 12개월 후에 보통주에 대한 92%의 소유권을 보장하는 반희석 조항이 포함되어 있습니다.
AIC는 1억 5천만 달러에서 2억 8천만 달러에 이르는 구조화 거래에 대한 여러 개의 LOI를 이미 수령했습니다. 이 회사는 동부 켄터키와 웨스트 버지니아에서 석탄 채굴 및 가공 자회사를 여섯 개 운영하며, 철강 산업에 메탈루르기 탄소 공급을 집중하고 있으며, 자메이카에 철광석 및 티타늄 자산도 보유하고 있습니다.
American Infrastructure (AIC), une filiale d’American Resources (NASDAQ:AREC), a signé une feuille de termes contraignante pour fusionner avec CGrowth Capital, Inc. (OTC PINK:CGRA). Après la fusion, AIC deviendra une filiale entièrement détenue par CGRA, qui sera renommée American Infrastructure Holding.
La fusion est structurée comme un échange exonéré d’impôts où les actionnaires d’AIC recevront des actions privilégiées de série A, convertibles en actions ordinaires de la société après la fusion. Les actions privilégiées de série A incluent une disposition anti-dilution, garantissant 92 % de propriété des actions ordinaires après douze mois.
AIC a précédemment reçu plusieurs lettres d’intention pour des transactions structurées allant de 150 millions à 280 millions de dollars. L’entreprise gère six filiales de mine et de traitement du charbon dans l’est du Kentucky et en Virginie-Occidentale, se concentrant sur l’approvisionnement en carbone métallurgique pour l’industrie sidérurgique, ainsi que sur des actifs de minerai de fer et de titane en Jamaïque.
American Infrastructure (AIC), eine Tochtergesellschaft von American Resources (NASDAQ:AREC), hat ein verbindliches Term Sheet zur Fusion mit CGrowth Capital, Inc. (OTC PINK:CGRA) unterzeichnet. Nach der Fusion wird AIC eine hundertprozentige Tochtergesellschaft von CGRA, das in American Infrastructure Holding umbenannt wird.
Die Fusion ist als steuerfreier Austausch strukturiert, bei dem AIC-Aktionäre Vorzugsaktien der Serie A erhalten, die in Stammaktien des Unternehmens nach der Fusion umgewandelt werden können. Die Vorzugsaktien der Serie A enthalten eine Verwässerungsschutzklausel, die 92% Eigentum an Stammaktien nach zwölf Monaten garantiert.
AIC hat zuvor mehrere LOIs für strukturierte Transaktionen erhalten, die zwischen 150 Millionen und 280 Millionen Dollar liegen. Das Unternehmen betreibt sechs Tochtergesellschaften im Kohlenbergbau und in der -verarbeitung im östlichen Kentucky und in West Virginia und konzentriert sich auf die Lieferung von metallurgischem Kohlenstoff an die Stahlindustrie sowie auf Eisenerz- und Titanressourcen in Jamaika.
Positive
- Potential uplisting to a senior national exchange following audit
- Strategic merger provides pathway for capital to support growth initiatives
- Previous LOIs valued company between $150-280 million
- Anti-dilution protection ensuring 92% ownership for AIC shareholders
- Tax-free transaction structure benefits shareholders
Negative
- Required audit completion before potential uplisting
- Current OTC Pink Sheet status of merger partner CGRA
Insights
The merger between American Infrastructure (AIC) and CGrowth Capital represents a strategic move to create a standalone public infrastructure materials company. The deal structure, which gives AIC shareholders 92% ownership through preferred shares, effectively values the combined entity between
The strategic value of this merger lies in AIC’s diverse asset portfolio spanning metallurgical carbon operations in Appalachia and mineral assets in Jamaica. As one of the few remaining metallurgical carbon growth platforms in North America, their position is particularly valuable given increasing domestic infrastructure demands and supply constraints. The company’s emphasis on their low-cost position and minimal required capital expenditure for production growth over the next four years suggests strong operational efficiency. The royalty-based operating model, partnering with experienced local operators, reduces operational risk while maintaining profit potential. This structure could prove especially advantageous in the current market environment where capital efficiency is crucial.
The platform will focus on expansion through organic growth and strategic acquisitions of additional infrastructure-related assets
Following the audit of the combined entity, the company will pursue an uplisting to a senior national exchange
FISHERS, IN / ACCESSWIRE / January 6, 2025 / American Resources Corporation’s (NASDAQ:AREC) (“American Resources” or the “Company”) subsidiary American Infrastructure Corporation (“AIC”), a raw material supplier to the infrastructure marketplace with a focus on iron ore, titanium and metallurgical carbon, has entered into a binding term sheet to merge with CGrowth Capital, Inc. (OTC PINK:CGRA) (“CGrowth Capital” or “CGRA”) as part of its spin out from American Resources Corporation. In conjunction with the merger with CGRA, the company has developed a structure to support future financing for both organic and acquisition growth within the infrastructure marketplace, aligning with its overall business strategy.
Mark Jensen, Executive Chairman of American Infrastructure Corporation, commented, “We believe this merger with CGrowth Capital represents a significant milestone for American Infrastructure and its shareholders, advancing our goal of achieving a senior exchange listing and providing a pathway for capital to support growth initiatives, both organic and through strategic acquisitions. As one of the last remaining metallurgical carbon growth platforms, we are confident in the strength of our asset base, which we believe is among the lowest cost in the industry. Over the next four years, we are well positioned to drive production and cash flow for our investors with relatively minimal capital expenditure required. We also believe this is an opportune time to be a pure-play infrastructure company, especially with the increasing focus on domestic infrastructure initiatives in the United States. Our strategy remains centered on leveraging our royalty and leasehold production model, which allows us to generate cash flow by partnering with experienced local operators who have a proven track record of success in the region. We are optimistic about the opportunities ahead in 2025 as we continue to grow the business. We also want to extend our gratitude to Nick Link and his team for their efforts establishing a strong platform like CGrowth Capital”.
Under the terms of the Share Exchange Agreement, American Infrastructure Corporation will become a wholly owned subsidiary of CGrowth Capital, Inc., which will change its name to American Infrastructure Holding Corporation. The American Infrastructure team will assume management of CGRA and nominate new board members, with Nick Link, the former Chief Executive Officer of CGRA, remaining on the board of the combined entity. The existing operations and assets of CGRA will be spun-out of that entity concurrent with this transaction, leaving the operations of American Infrastructure Corporation as the primary operations of the combined entity.
American Resources has received multiple LOI’s for structured transactions over the last year ranging from
The transaction was structured as a tax-free exchange of American Infrastructure Corporation shares for shares of CGrowth Capital, Inc.. Common shareholders of American Infrastructure, as consideration for the merger, will receive a Series A Preferred Stock, which can be converted into common shares of the post-merger combined company, American Infrastructure Holding Corporation, at the holder’s discretion. The Series A Preferred Stock will automatically convert into common stock twelve months after the merger. Additionally, the Series A Preferred Stock includes an anti-dilution provision, ensuring that any Series A Preferred shares not converted into common stock of the combined entity by the twelve-month anniversary of the merger will automatically convert into common stock of the combined entity, representing
About American Infrastructure Corporation
American Infrastructure Corporation is a raw material supplier to the infrastructure marketplace with a focus on metallurgical carbon, iron ore and titanium. Current operations are primarily focused on the extraction, processing, transportation, and distribution of coal for a variety of industries, with a primary focus on metallurgical quality coal to the steel industry. We have six coal mining and processing operating subsidiaries in the metallurgical carbon industry located in Eastern Kentucky and West Virginia along with a substantial iron ore and titanium asset base in the mining region of Jamaica. For more information visit americaninfracorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About American Resources Corporation
American Resources Corporation (NASDAQ: AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About CGrowth Capital Inc.
CGrowth Capital Inc. (OTC: CGRA) is a public holding company for alternative and undervalued assets. The company is sector and industry agnostic and currently consists of two divisions including Mining and Sports Technology. The company is focused on investing in growth-oriented opportunities where the company’s capital, expertise, and capabilities can help create significant added value for shareholders. For more information visit https://cgrowthcapital.com.
Special Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company’s actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation’s control. The words “believes”, “may”, “will”, “should”, “would”, “could”, “continue”, “seeks”, “anticipates”, “plans”, “expects”, “intends”, “estimates”, or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com
CGrowth Capital Inc. Contact
info@cgrowthcapital.com
SOURCE: American Resources Corporation
View the original press release on accesswire.com
FAQ
What is the ownership structure after American Infrastructure ‘s merger with CGRA?
AIC shareholders will receive Series A Preferred Stock convertible into common shares, representing 92% ownership of the combined entity after twelve months.
What was the valuation range of previous LOIs received by AREC for American Infrastructure?
American Infrastructure received multiple LOIs with valuations ranging from $150 million to $280 million in total value.
What are American Infrastructure ‘s current operational assets?
AIC operates six coal mining and processing subsidiaries in Eastern Kentucky and West Virginia, plus iron ore and titanium assets in Jamaica.
When will American Infrastructure pursue uplisting to a senior exchange?
The company plans to pursue uplisting to a senior national exchange following the completion of the audit of the combined entity.
What will be the new name of CGRA after the merger with American Infrastructure?
CGrowth Capital will change its name to American Infrastructure Holding following the merger.
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