Merger AAOIU

Royalty Management Corporation to become publicly listed through merger with American Acquisition Opportunity Inc

, SPAC Research

American Acquisition Opportunity Inc. (Nasdaq: AMAO) announced today that Royalty Management Co (“RMC”), an innovative royalty company and AMAO, have entered into a definitive agreement that will result in RMC becoming a publicly listed company.

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. 

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 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).

The strength of RMC’s financial performance reduces the need for a separate PIPE transaction, which can often times complicate a balance sheet or capital structure.

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.

EF Hutton, division of Benchmark Investments, LLC, is serving as capital markets advisor and served as underwriter for AMAO’s initial public offering in March 2021. Loeb & Loeb, LLP is serving as legal advisor to AMAO. Law Office of Clifford J. Hunt, P.A. is serving as SEC legal advisor to RMC and Barnes & Thornburg LLP is serving as Indiana corporate law advisor to RMC.

Upon closing of the transaction, the combined company will be named Royalty Management Company and expects to be listed on the NASDAQ 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.

Read more