Note 1 - Organization and Business

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1.

         Organization and Business

Ramaco Resources, Inc. (“Resources”) through its wholly owned subsidiary Ramaco Development LLC, is engaged in the business of production and sale of metallurgical coal in central and northern Appalachia. Resources was incorporated pursuant to the laws of the State of Delaware on

October 24, 2016

to become a holding company for Ramaco Development, LLC which was previously a wholly-owned subsidiary of Ramaco Coal, LLC (formerly Ramaco Carbon, LLC).

Pursuant to the terms of a corporate reorganization (“Reorganization”) that was completed in connection with the closing of Resources

’ initial public offering (“IPO”), all the interests in Ramaco Development, LLC were exchanged for newly issued common shares of Resources and as a result, Ramaco Development, LLC became a wholly-owned subsidiary of Resources. Therefore, the financial information for the period of

January 1, 2017

through

February 8, 2017,

as contained in these financial statements, pertain to the historical financial statements and results of operations of Ramaco Development, LLC.

 

The terms “Company,” “we,” “us,” “our,” and similar terms when used in the present tense, prospectively or for periods since our Reorganization on

February 8, 2017,

refer to the Company and its subsidiaries, and for historical periods prior to our Reorganization, refer to Ramaco Development, LLC.

 

On

February 8, 2017,

Resources completed its IPO of common stock pursuant to a registration statement on Form S-

1

(File

333

-

215363

), as amended and declared effective by the SEC on

February 2, 2017.

Pursuant to the registration statement, the Company registered the offer and sale of

6,000,000

shares of

$0.01

par value common stock, which included

3,800,000

shares of common stock sold by the Company and

2,200,000

shares of common stock sold by the selling stockholders.

Proceeds of the Company

’s IPO, based on the public offering price of

$13.50

per share, were approximately

$51.3

million. After subtracting underwriting discounts and commissions of

$3.6

million, the Company received net proceeds of approximately

$47.7

million (

$43.7

million net of offering expenses paid directly by the Company). The Company used

$10.7

million of the net proceeds to repay the Ramaco Coal, LLC note payable in its entirety, including accrued interest thereon. All units of the Company’s then-outstanding convertible Series A preferred units automatically converted into an aggregate of

12,764,426

shares of common stock in connection with the Reorganization.