It’s official — National Coal Corp. shareholders on Thursday approved the sale of the Knoxville-based company to West Virgina businessman and coal baron Jim Justice.
Justice, who attended the University of Tennessee and graduated from Marshall University, will pay $1 per share, a 54 percent premium over National Coal’s closing price on Sept. 27, the day the sale was announced.
UPDATE: Links added for more news about West Virginia businessman Jim Justice.
National Coal Corp. has decided selling out is its best option.
The Knoxville-based coal company on Tuesday said it is being sold to Ranger Energy Investments LLC for $1 per share of common stock.
The proposed sale price represents a 54 percent premium on National Coal’s closing price of 65 cents per share on Monday.
Knoxville-based National Coal Corp. recently generated some much-needed cash by selling a Superior Highwall Mining System for $4.1 million, according to a Securities Exchange Commission filing.
The system was sold to SEACAP Leasing Associates II LLC.
National Coal has been in a selling mood lately as it has moved aggressively to pay off debt. Among assets previously sold were the New River Tract near Oneida, Tenn., a preparation plant and a short-line railroad.
Click here for National Coal SEC filings on Edgar online.
National Coal Corp. has started construction of a new mine which will add 480,000 tons per year to the company’s production, generating some much needed cash.
“With the beginning of construction on Mine 12, the Company reaffirms its focus on lower costs, higher selling prices, and improved margins. This mine should help us achieve one of our key goals — generating free cash flow,” Daniel A. Roling, president and CEO of the Knoxville-based company said in a statement released Thursday.
The new mine comes at a good time for National Coal, which has been selling some assets to pay of
f debt and last month executed a 1-for-4 reverse stock split.
The not-so-good times continue for National Coal Corp. The Knoxville-based coal producer on Tuesday said its board had approved a 1-for-4 stock split.
Trading of the split stocks began today.
Reverse stock splits reduce the number of shares outstanding. This increases the value of individual shares but does not change the market value of the company’s total shares outstanding.
It’s all about appearances, or making the stock look more valuable than it really is. But will it be enough to bring National Coal a reversal of fortune?