The conversion at $1.70 per share reduces payables and debt by over 52% furthering focus on portfolio expansion, stock repurchases, and future dividend programs
Royalty Management Holding Corporation (NASDAQ:RMCO)
FISHERS, INDIANA, UNITED STATES, September 3, 2024 /
EINPresswire.com/ -- Royalty Management Holding Corporation (Nasdaq: RMCO) (“Royalty Management” or the “Company”), an innovative royalty company building shareholder value by acquiring and developing high value assets in a variety of resource-driven and emerging technology industries is pleased to announce that it has executed a debt to equity conversion with over 52% of its existing debts and payables into preferred equity that converts into common stock at approximately $1.70 per share (an over 100% premium to current market prices). This transaction further positions the Company for future growth and results in an increase of shareholder equity to $12.3 million.
To accomplish this effort, the Company's board of directors recently approved the creation of a new class of preferred stock to enable the conversion of debt to equity to further strengthen the balance sheet. Thus far, conversations with debt holders have been extremely positive resulting in over half (approximately $1.6 million) of debt converted (out of $3.1 million total debt and liability at June 30, 2024) into the preferred stock. The preferred stock (known as the “Series A Preferred Stock”) converts, at the option of the holder, into common stock of the company at $1.70 per share, a significant premium to the current common stock share price. The continued strengthening of the balance sheet will enable the Company to more aggressively utilize future cashflows to focus on portfolio growth, expansion, stock repurchases, and, if authorized, future dividends.
Thomas Sauve, Chief Executive Officer of the Company, stated, “Having a strong balance sheet is imperative as we continue our growth as a business. We are evaluating multiple opportunities that could add to the future cash flow generation, which would also expand our ability to pay dividends to our equity owners in the future, should our board choose to enact a dividend program. The current market is also presenting numerous attractive investment opportunities and now that a majority of our debt and majority of our payables converted to equity, and hopefully more as we continue these conversion efforts, we have significant flexibility to invest in new and existing opportunities along with investing into our company by buying back stock.”
Investment areas of interest are alternative investments in both public and private companies focusing on:
- gold, silver and precious metals
- critical minerals & infrastructure-based metals
- data centers and storage facilities
- nontraditional streaming opportunities focusing on environmental improvement.
Please send opportunities of interest to investments@royaltymgmtcorp.com for our investment team to evaluate.
About Royalty Management Holding Corporation
Royalty Management Holding Corporation (NASDAQ: RMCO) is a royalty company building shareholder value to benefit both its shareholders and communities by acquiring and developing high value assets in sustainable market environments. The business model focuses on acquiring and structuring cashflow and revenue streams around assets that can support the communities by monetizing the current existing cash flow streams while identifying transitionary cash flow from the assets for the future. For more information visit
www.royaltymgmtcorp.com.
Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those that will be set forth in the “Risk Factors” section of the Company’s registration statement and proxy statement/prospectus to be filed with the SEC. Copies will be available on the SEC’s website,
www.sec.gov. The information contained in this release is as of the date first set forth above. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Contact:
RedChip Companies Inc.
Robert Foley
1-800-RED-CHIP (733-2447)
Info@redchip.com
Company Contact:
Thomas Sauve
Chief Executive Officer
(317) 855-9926
SOURCE: Royalty Management Holding Corporation
Thomas Sauve
Royalty Management Holding Corporation
+1 (317) 855-9926
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