The shares of A-Mark Precious Metals, Inc. (NASDAQ: AMRK) exhibited a bullish trajectory within the US market, soaring by 19.28% to culminate at $39.04 yesterday. This notable ascent in AMRK stock value appears to stem from the disclosure regarding dividend disbursement.
A-Mark Precious Metals (AMRK) disclosed that its Board of Directors has sanctioned a quarterly monetary dividend of $0.20 per share, upholding the company's ongoing dividend regimen. The slated distribution is earmarked for disbursement on April 29, 2024, to shareholders recorded as of April 16, 2024.
Recently, A-Mark Precious Metals concluded its previously announced dealings with AMS Holding, LLC (AMS), a prominent platform engaged in the procurement and promotion of vintage and contemporary coins. This transaction notably encompassed the acquisition of LPM Group Limited (LPM), renowned as one of the foremost dealers in precious metals across Asia.
A-Mark's strategic vision includes utilizing LPM's operational base in Hong Kong as a pivotal hub in Asia to amplify LPM's direct-to-consumer commerce, leveraging its established prowess in e-commerce. This strategic move by AMRK aims to exploit the burgeoning demand for precious metals across the Asian market.
A-Mark has secured full ownership of LPM from AMS, at an upfront consideration totaling $41.9 million, comprising $37.9 million in cash and $4.0 million in A-Mark common stock. Upon finalization of the transaction, LPM's tangible net assets stood at $11.9 million, encompassing net cash reserves and inventories of precious metals.
AMS stands to gain an additional $37.5 million in cash contingent upon meeting specified Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) targets for 2024, 2025, and 2026.
Furthermore, a consortium comprising A-Mark, Pinehurst, and Stack's Bowers Numismatics, LLC, an affiliate of A-Mark, has secured a stake in AMS equivalent to 10% of the total, fully diluted common equity interests in AMS, for a sum of $6.19 million. Notably, Greg Roberts, CEO of A-Mark, has assumed a position on the board of directors at AMS as part of this transaction.