American Rebel Holdings Inc. (NASDAQ:AREB), a company specializing in miscellaneous fabricated metal products, has entered into a short-term loan agreement with a board director, Lawrence Sinks. The promissory note, dated June 28, 2024, is for $400,000 and is intended to support the operations of its wholly-owned subsidiary, American Rebel Beverages, LLC.
The loan is set to mature on September 30, 2024, with the principal and interest amounting to $520,000 due at that time. However, the company has the option to decrease the repayment amount to $480,000 if the loan is settled by July 31, 2024, or $500,000 if paid by August 31, 2024.
In addition to the loan agreement, American Rebel held its annual meeting of stockholders on June 27, 2024. The stockholders voted on two key proposals during the meeting. The first proposal was to elect five directors—Charles A. Ross, Jr., Corey Lambrecht, Larry Sinks, Michael Dean Smith, and C. Stephen Cochennet—to the board to serve until the next annual meeting. The second proposal was to confirm the appointment of GBQ Partners LLC as the company's independent auditors for the ensuing year. Both proposals were approved by the stockholders.
The votes for the director elections were overwhelmingly in favor, with each candidate receiving over 75 million votes for and comparatively few against or abstentions. The affirmation of GBQ Partners LLC as independent auditors also passed with a significant majority, garnering over 77 million votes for and less than 200,000 against.
This financial maneuver and the outcomes of the stockholder meeting were disclosed in a recent 8-K filing with the Securities and Exchange Commission. The details of the promissory note can be found in Exhibit 10.1 of the filing, which is incorporated by reference. The company's business address is 5115 Maryland Way, Suite 303, Brentwood, Tennessee, and its telephone number is (833) 267-3235. American Rebel Holdings Inc. was formerly known as Cubescape Inc. until its name change in 2015. The company is incorporated in Nevada and ends its fiscal year on December 31.
In other recent news, American Rebel Holdings has been making significant moves in the beverage industry. The company has entered into distribution agreements to market its American Rebel Beer in Connecticut, Kansas, and Tennessee. The partnerships with Dichello Distributors, Standard Beverage Corporation, and Best Brands, Inc. respectively, are expected to increase the availability of the beer in these states.
In addition to these developments, American Rebel has also announced some internal changes. Thomas Mihalek, with his extensive experience from Smith & Wesson and Savage Arms, has been appointed as the CEO of its subsidiary, Champion Safe Co. This move is part of a broader strategy to consolidate operations and grow revenues.
Finally, American Rebel has initiated a Reg A+ offering, inviting investors to participate in the company's growth. However, the company has cautioned that such investment carries significant risks and potential illiquidity. As always, these recent developments are based on press release statements from American Rebel Holdings Inc.
InvestingPro Insights
In light of American Rebel Holdings Inc.'s recent financial activities, including the short-term loan agreement, the following insights from InvestingPro might provide additional context for investors. The company is currently operating with a significant debt burden, which could pose challenges in meeting interest payments. This is particularly relevant considering the terms of the new loan agreement with a board director. In addition, American Rebel Holdings Inc. is trading at a low Price / Book multiple of 0.53, which could indicate that the stock is undervalued relative to its book value. Despite these challenges, analysts anticipate sales growth in the current year, which could signal potential for recovery.
InvestingPro Tips suggest that while the company has been quickly burning through cash, there's an expectation of net income growth this year. Moreover, the stock has experienced a strong return over the last month and three months, with returns of 33.43% and 49.0% respectively. These metrics may be of interest to investors considering the company's performance and future prospects.
For those looking for more in-depth analysis, there are additional InvestingPro Tips available on American Rebel Holdings Inc., which could further inform investment decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for access to these valuable insights.
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