Form 4: Ramaco Director Sells $30M in Stock via Secondary Offering

Ramaco Resources Director Peter A. Leidel, through affiliated entities, sold over 1.6 million shares of Class A Common Stock for approximately $30 million as part of a secondary offering.

Summary

• Director Peter A. Leidel, through affiliated entities Yorktown Energy Partners IX, X, and XI, sold a total of 1,599,000 shares of Ramaco Resources Class A Common Stock.
• The sales occurred on August 8, 2025, at a price of $18.75 per share, before underwriting discounts and commissions.
• The total value of the shares sold is approximately $29,981,250.
• The sales were in connection with the exercise in full of an overallotment option granted to the underwriters pursuant to an underwriting agreement for a registered underwritten secondary offering by the Issuer.
• Following these transactions, the beneficial ownership of Class A Common Stock by the affiliated entities is 3,097,134 shares (Yorktown IX), 2,502,930 shares (Yorktown X), and 3,786,797 shares (Yorktown XI).
• Peter A. Leidel also directly holds 85,474 shares.
• A mathematical error in a previous Form 4 filed on March 27, 2025, was corrected, adjusting Yorktown IX's reported balance from 3,662,881 to 3,625,044 shares to account for a properly reported sale of 37,837 shares on that date.

Sentiment

Score: 4

Explanation: While the sale was part of a structured secondary offering (overallotment), significant insider selling, even if pre-planned, can be viewed with caution by the market. The correction of a prior error is neutral.

Positives

• The sale was part of a registered underwritten secondary offering, indicating a structured and transparent market transaction.
• The exercise of the overallotment option suggests strong demand for the secondary offering.

Negatives

• Significant insider selling by a director and 10% owner, totaling 1,599,000 shares, could be perceived negatively by investors, potentially signaling a lack of confidence or increasing market supply.

Risks

• Potential negative investor perception due to significant insider share sales, which could lead to downward pressure on the stock price.

Future Outlook

NA

Management Comments

• The reporting person disclaims beneficial ownership of these securities except to the extent of its pecuniary interest therein, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for Section 16 or any other purpose.

Industry Context

This filing reports an insider transaction, which is specific to the company and its affiliated entities, and does not directly provide broader industry trends or competitive analysis.

Related Party Transactions

• Sale of Class A Common Stock by entities (Yorktown Energy Partners IX, X, XI) where Peter A. Leidel, a director and 10% owner, is a member and manager of their general partners, constituting a related party transaction.

Stakeholder Impact

• Shareholders: The sale of a large block of shares increases the public float, which could potentially exert downward pressure on the share price due to increased supply. It may also lead to negative sentiment if interpreted as a lack of confidence by a significant insider.

Key Dates

Recommendation

The significant sale of shares by a director and 10% owner, while part of a structured secondary offering, introduces additional supply to the market and could be perceived as a negative signal by some investors. However, without further context on the company's operational performance or strategic direction, a 'hold' recommendation is prudent, advising investors to monitor future developments and broader market conditions.

Keywords

Ramaco Resources, METC, Insider Sale, Form 4, Stock Sale, Director, 10% Owner, Secondary Offering, Yorktown Energy Partners, Overallotment Option