American Resources Corp (AREC)

[RandyKCMO]

8-K DETAILS ON WEEK'S ACQUISITION of Colonial Coal, Inc. and Empire Coal Holdings LLC for approximately $26.9 million in a primarily all-stock transaction.

https://ih.advfn.com/stock-market/NASDAQ/american-resources-corporation-AREC/stock-news/79339801/amended-statement-of-changes-in-beneficial-ownersh

According to today's Amended 8-K dated February 26, 2019, the cash portion was $500,000 up front and a 3% Note for $2,000,000 due in 6 months.

The question I had was how many shares were issued for this ACQUISITION.

Well, the answer is 2,000,000 shares. In other words, the acquisition took place before the IPO funding (which enabled the subsequent uplisting to NASDAQ) and the drop in stock price.

$26,900,000 / 2,000,000 shares OR the equivilance of $13.45 per share.

In other words, the currency we used to buy this new property was valued over 4 times the current share price.

Looking at it from today's share price, we could say we saved the equivalence of over 4,725,000 shares. Ironically, while I wasn't thrilled that the recent NASDAQ IPO took place at $4.00 per share, we've added $4 Million in cash for a fairly small percentage of our outstanding shares.

Granted our Market Cap has taken a major hit... but the underlying value of the company and potential for future profit has ONLY INCREASED.

Looked at differently it's almost like we're experiencing a gain of $21,900,000 on the properties we purchased.