NASHVILLE, TN - American Rebel Holdings, Inc. (NASDAQ: AREB), a company known for its branded safes, personal security products, and recently introduced beverage line, has implemented a 1-for-9 reverse stock split of its common stock as of the start of trading today. This move is aimed at meeting Nasdaq's minimum bid price requirement for continued listing.
The reverse stock split reduces the number of American Rebel's outstanding shares from approximately 9.5 million to about 1.06 million. Post-split, the stock will continue trading on the Nasdaq under the ticker "AREB" but with a new CUSIP number, 02919L505. No fractional shares will be issued; instead, fractional interests will be rounded up to the nearest whole number.
The adjustment will also affect the company's outstanding derivative securities, with exercise prices and numbers of derivatives to be proportionally modified. Securities Transfer Corporation has been appointed as the exchange and paying agent for the split. Shareholders with physical stock certificates will receive instructions for exchanging their pre-split certificates. Those holding shares in book-entry form or through brokerage accounts are not required to take any action.
American Rebel's portfolio includes not only security and self-defense products but also a venture into the beverage industry with American Rebel Beer. Additionally, the company produces branded apparel and accessories. Information for investors is available on the company's website.
The reverse stock split is part of American Rebel's efforts to comply with Nasdaq's listing standards, specifically the minimum bid price rule. The company's forward-looking statements indicate a focus on raising capital, incorporating acquisitions efficiently, expanding product lines, and addressing new market targets, all while striving to meet financial and reporting expectations. However, actual results may differ due to various risk factors, which are detailed in the company's SEC filings, including its Annual Report for 2023.
This news is based on a press release statement from American Rebel Holdings, Inc.
In other recent news, American Rebel Holdings announced a 1-for-9 reverse stock split, consolidating approximately 9.2 million existing shares into about 1.02 million shares. This strategic decision aims to maintain the company's Nasdaq listing. In other financial developments, the company issued 669,643 shares of common stock to settle an agreement with a vendor, potentially conserving cash reserves for other uses.
American Rebel Holdings also secured two significant loans, one for $179,400 from 1800 Diagonal Lending, LLC, and another for $400,000 from board director Lawrence Sinks. These funds will support its operations and ongoing expansion efforts. However, the company is currently facing a trademark infringement lawsuit filed by Liberty Safe and Security Products, Inc., which could potentially impact its financial and operational outcomes.
In terms of personnel changes, Todd Porter was appointed as the President of its beverage division, American Rebel Beverages, LLC. In addition, Thomas Mihalek has taken over as the CEO of its subsidiary, Champion Safe Co., and GBQ Partners LLC has been appointed as its independent auditors.
In terms of product developments, American Rebel anticipates beer sales to reach around $1 million for 2024, with a significant increase expected in 2025. The company has also initiated a Reg A+ offering, inviting investors to participate in the company's growth. These are the recent developments for American Rebel Holdings Inc.
InvestingPro Insights
American Rebel Holdings' recent 1-for-9 reverse stock split comes at a time when the company faces significant financial challenges. According to InvestingPro data, AREB's market capitalization stands at a modest $7.11 million, reflecting its small-cap status. The company's financial health appears precarious, with InvestingPro Tips highlighting that AREB "operates with a significant debt burden" and "may have trouble making interest payments on debt."
Despite these challenges, there are some positive signals. An InvestingPro Tip indicates that "net income is expected to grow this year," and "analysts anticipate sales growth in the current year." This aligns with the company's stated focus on expanding product lines and addressing new market targets.
However, investors should note that AREB is "quickly burning through cash" and "suffers from weak gross profit margins," according to InvestingPro Tips. The company's revenue for the last twelve months as of Q2 2024 was $15.45 million, with a concerning revenue growth of -3.59% over the same period.
The stock's recent performance has been volatile, with InvestingPro data showing a significant 74.02% price return over the last month and a striking 178.43% return over the past six months. This volatility is consistent with the InvestingPro Tip that the "stock generally trades with high price volatility."
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for AREB, providing a deeper understanding of the company's financial position and market performance.
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