Royalty Management Corporation To Become Publicly Listed Through Merger With American Acquisition Opportunity Inc.;
American Acquisition Opportunity Inc. (NASDAQ:AMAOU) (the "Company") announced today that Royalty Management Co ("RMC"), an innovative royalty company and American Acquisition Opportunity Inc ("AMAO") (NASDAQ:AMAO), a publicly-traded special purpose acquisition company, had entered into a definitive agreement that will result in RMC becoming a publicly listed company. Upon closing of the transaction, the combined company will be named Royalty Management Company and expects to be listed on the Nasdaq Stock Market under the ticker symbol "RMCO." The resulting company will continue to be based in Fishers, Indiana and will be led by a diverse board of innovators in mineral, agriculture, natural resources, intellectual property and energy transition sectors.
Mark Jensen, Chief Executive Officer of AMAO, said, "Our focus for AMAO was to partner with a dynamic cash flowing company that didn't require a complicated or highly dilutive financing as part of the de-SPAC process in order to thrive on its own as a public company. We evaluated over 50 targets during our process and went to in-depth analysis on over five targets. Once we reduced the size of capital in trust, we gained a significant amount of flexibility to focus on opportunities that better fit our intended thesis that we believe will be accretive to our shareholders. We also wanted to invest in a company that understood the importance of generating strong returns in today's market without the immediate need for raising capital while also having a vision on how to grow the business in line with how the economy and world markets are trending. RMC fits this mold with how it is transforming the royalty industry, focusing on current cash flow while creating a broad funnel of future long-term royalty streams in transitionary industries. We are excited to create this synergistic relationship between RMC and AMAO so that the combined company can continue to build on its impressive growth trajectory as a public company and deliver both yield and growth to our shareholders."
Leading Royalty Company Focused on Sustainable Outcomes for all Stakeholders
Founded in 2021, RMC is changing the way operators and investors view royalty streams. The world is changing, and the monetization of more diverse revenue streams is needed as well. RMC focuses on current revenue streams through undervalued resources that fit today's infrastructure market while making investments in assets that fit tomorrow's electrification, mineral resources and infrastructure needs. Additionally, RMC looks at all ways to monetize end of life assets through sustainable development and stakeholder engagement to generate solid cash flow streams while also driving communities forward.
RMC's long-term recurring revenue streams are based on three pillars; natural resources & land assets, sustainable assets and intellectual property and digital assets.
Resources & Land: Acquire assets and or rights for the development of critical and rare earth element, metallurgical carbon for steel and specialty alloy metals, traditional resource deposits and land resources that can be proven out and monetized for current and long-term cash flow streams.
Sustainable Assets: Invest in sustainable revenue streams that have the ability to monetize unique aspects of property and land through innovation where others have traditionally focused only on legacy revenue streams. RMC targets water, agriculture, sustainable timber and sustainable building solutions through long term financial structures.
Intellectual Property & Digital Assets: Acquire the rights to intellectual property, patents and the development or sponsor of data centers which capitalize on the digital and data-oriented transition of many industries. These investments are focused on generating long term cash flow streams from new and existing technology.
Transaction Overview
The business combination values RMC at an implied $111 million pro forma enterprise value, at a price of $10.00 per share, assuming no redemptions by AMAO shareholders. The boards of directors of AMAO and RMC have approved the proposed transaction, which is expected to be completed in the fourth quarter of 2022, subject to, among other things, the approval by AMAO's stockholders and by RMC's shareholders and the satisfaction or waiver of other customary closing conditions. The transaction will result in gross proceeds of approximately $16 million to RMC (assuming no redemptions by AMAO stockholders and prior to the payment of transaction expenses).
Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by AMAO with the Securities and Exchange Commission and available at https://www.sec.gov/.