American Energy Partners Inc (OTC:AEPT) Stock Continues To Trend Higher
There are a number of companies that could come into focus among investors this morning owing to key developments on Monday, and one of those is American Energy Partners Inc. (OTC:AEPT). The company, which is going to be known as American Environmental Partners Inc. on October 30, 2023, pending regulatory approval, made a key announcement yesterday. It revealed that it inked a letter of intent with regards to the acquisition of SCWorx Corp., a company listed on the NASDAQ.
SCWorx operated under the ticker symbol WORX. In the Letter of Intent, the proposed terms and conditions of the merger between the two companies were set forth. Once the business combination transaction does go through American Environmental, the healthcare data management business of SCWorx would each be operated by a fully owned subsidiary unit of SCWorx. In the news release, it was further noted that SCWorx believed that the transaction would be structured as a share-for-share exchange deal.
It was revealed that SCWorx shareholders would hold 17% and American Environmental would retain 83% of the issued and outstanding shares in SCWorx. However, it would only go through after American Environmental raised $6 million in fresh capital, which had been a condition of the proposed transaction. Investors ought to note that the letter of intent signed by the two companies had both non-binding and binding elements.
One of the binding elements is related to the fact that American Environmental would need to provide $150,000 in the form of working capital to SCWorx and also provide the costs related to the closing of the transaction. Additionally, both entities had also been barred from discussing an acquisition of a similar nature with other parties under the same conditions of the proposed transaction. The Board of Directors of both companies had approved the proposed transaction. It is expected to be closed at some point in the first quarter of 2024. The transaction could either be a stock-for-stock exchange, which would see American Environmental become a fully owned subsidiary of SCWorx. Or it could be a ‘reverse triangular merger’, in which case a subsidiary of SCWorx would merge with American Environmental.
The environmental services company had been in focus on October 13 when it made an announcement with regards to its change of name to American Environmental Partners Inc. It would go into effect on October 30, 2023. American Energy Partners revealed that it had filed for the name change with FINRA on October 12. The Chairman and Chief Executive Officer of the company, Mr. Domitrovitsch, spoke about the development.
He noted that the change of name was a necessary step so as to reflect the evolution of the company and the business segments in which it would be involved. The company describes itself as a conglomerate holding company and seeks to unlock value for its shareholders through the growth and acquisition of environmental services. It may well be a good time to keep an eye on the stock.
