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American Rebel Holdings Inc. (NASDAQ:AREB), a company specializing in miscellaneous fabricated metal products, has entered into a Securities Purchase Agreement with 1800 Diagonal Lending, LLC on August 8, 2024. The agreement details a loan of $179,400 to American Rebel, evidenced by a promissory note.
The note carries an original issue discount of $23,400 and fees of $6,000, resulting in net proceeds of $150,000 for American Rebel. The terms of the loan dictate a structured repayment plan, beginning with a first installment of $103,155 due on February 15, 2025, followed by four subsequent monthly payments of $25,788.75 each. The total repayment amount due to the lender is $206,310.00.
In the event of a default, the outstanding balance becomes immediately payable, with the company owing 150% of the sum of the principal, accrued interest, and any default interest at an annual rate of 22%. Moreover, during a default, the lender has the right to convert the unpaid principal into restricted shares of American Rebel's common stock at a 25% discount to the market price, with a cap ensuring the lender does not exceed ownership of 4.99% of the company's outstanding common stock.
In other recent news, American Rebel Holdings Inc. is facing a trademark infringement lawsuit filed by Liberty Safe and Security Products, Inc., alleging the misuse of the term "Freedom" in their product marketing. The case could potentially influence the company's financial and operational outcomes. Additionally, the company secured a $400,000 loan from board director Lawrence Sinks, aimed at supporting its subsidiary, American Rebel Beverages, LLC. This move is part of the company's ongoing expansion efforts.
American Rebel also confirmed the appointment of GBQ Partners LLC as its independent auditors during its annual stockholders' meeting. The company has seen internal changes with Thomas Mihalek taking over as the CEO of its subsidiary, Champion Safe Co. In terms of market expansion, American Rebel has secured distribution licenses for its American Rebel Beer in Connecticut, Kansas, and Tennessee, partnering with Dichello Distributors, Standard Beverage Corporation, and Best Brands, Inc. respectively.
The company has also initiated a Reg A+ offering, inviting investors to participate in the company's growth, while cautioning about the associated risks and potential illiquidity.
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