Business
RAMACO RESOURCES PROVIDES UPDATE REGARDING TRANSITION TO NEW DUAL-CLASS SHARE STRUCTURE
LEXINGTON, Ky., June 12, 2023 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, "Ramaco" or the "Company"), a leading operator and developer of
About this update from Ramaco Resources, Inc.
[{"type":"text","content":"LEXINGTON, Ky., June 12, 2023 /PRNewswire/ -- Ramaco Resources, Inc. (NASDAQ: METC, \"Ramaco\" or the \"Company\"), a leading operator and developer of high-quality, low-cost metallurgical coal, today announced the results of voting from the Company's Special Meeting of Stockholders (\"Special Meeting\"). Among other things, the meeting approved the creation and distribution of a separate class of common stock, the Class B common stock (\"Distribution\"). The Class B common stock will provide holders of existing common stock direct participation in the financial performance of the CORE Assets, which is an abbreviation of \"Carbon Ore-Rare Earth\". The CORE Assets consist of three non-cost bearing revenue streams from coal infrastructure assets, coal royalty fees, and carbon products/rare earth elements.\nTRANSACTION UPDATE\nShareholders voted to approve the creation of the Class B common stock, with 99% of shareholders who voted approving the measure (or approximately 74% of total outstanding shareholders).The Company will have a Board meeting in late-July whereby the Board will consider the amount and timing for the first dividend paid to holders of Class B common stock.\"It has always been Ramaco's mission to both maximize long term shareholder value and return increasing amounts of capital to our shareholders. Our transition to a new dual-class share structure is an important step in this process,\" stated Randall Atkins, Chairman and CEO of Ramaco Resources. \"We are fortunate to have a portfolio of unique businesses in our CORE Assets. We are confident our new share structure will provide investors increased transparency and visibility into these businesses, and will further highlight the growth, stability, and future opportunities at Ramaco.\nThe tracking stock is expected to pay a cash dividend based on the financial performance of the CORE assets. Based upon our projections, this new additional dividend to CORE shareholders would in practical terms increase our overall total 2023 dividend payout by roughly 33%. It would similarly increase our current overall dividend yield on both classes of stock to over 9% versus, roughly 6% today.\nWe are committed to our long-term capital return strategy. The increased dividend payout from this transaction highlights both the confidence that we have in our existing underlying busines...