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American Energy Partners Inc. (OTC:AEPT) Stock in Focus After Definitive Agreement

Scott Birndorf

The mission-critical environmental firm American Energy Partners Inc. (OTC:AEPT) is involved with processing and remediation solutions meant for industrial and infrastructural companies. On December 26, the company was in the news cycle after it announced that it had inked a definitive agreement pertaining to a plan of merger with SCWorx Corp. on December 21, 2023.

Once the transaction is completed and approval of the listing application to NASDAQ for the business combination comes through, the entity would be named American Environmental Partners Inc. The shares of the entity would trade on NASDAQ under the ticker symbol AEPT.

The Chief Executive Officer and Chairman of the company, Brad Domitrovitsch, spoke about the development as well. He noted that the agreement was a transformational one for both companies and went on to note that it would take American Energy Partners a step closer to a listing on NASDAQ.

Additionally, Domitrovitsch thanked the team at Worx for the work that they had put in to turn the deal into a reality, as well as personnel at American Energy Partners who had worked tirelessly to create a new iteration of the company. He also stated that the company had a major new opportunity ahead and expressed his confidence that American Energy Partners had the right team to execute its strategy.

The boards of both companies approved the transaction, which is expected to be closed at some point in the first fiscal quarter of the 2024 calendar year. The closure of the transaction would take place once regulatory approval, shareholder approval, and other major closing conditions were fulfilled.

As per the terms of the transaction, shareholders of American Energy Partners would receive Worx common stock, which would be equal to 83% of the combined entity on a diluted basis. That would happen following the raising of $6 million worth of capital prior to the merger by American Energy Partners, a pre-requisite for the execution of the agreement.