American Rebel secures $2.5 million in private placement

NASHVILLE, TN - American Rebel Holdings, Inc. (NASDAQ: AREB), a micro-cap company with a market capitalization of just $0.39 million and facing significant financial challenges according to InvestingPro data, has announced a private placement deal expected to generate approximately $2.5 million in gross proceeds. The transaction includes the sale of 724,640 common stock shares or pre-funded warrants, along with series A and B warrants, with a purchase price of $3.45 per share or warrant.

The series A warrants, immediately exercisable upon issuance, have a five-year lifespan and an exercise price of $2.95 per share. The short-term series B warrants, also exercisable immediately, will expire eighteen months from issuance. The closing of the placement is anticipated on or about April 7, 2025, subject to customary conditions.

H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. If the accompanying warrants are fully exercised, American Rebel could receive an additional $8.5 million, though there is no guarantee that the warrants will be exercised or that the company will receive the proceeds.

The securities are being offered under the Securities Act of 1933, as amended, and have not been registered under the Securities Act or any state securities laws. Therefore, they cannot be sold in the United States absent registration or an exemption from registration requirements. American Rebel has agreed to file a resale registration statement for the securities.

The net proceeds from the offering are intended for general corporate purposes, including working capital. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the securities.

American Rebel, which also designs and markets branded apparel, has recently expanded into the beverage industry with its American Rebel Beer. The light lager beer is marketed for its quality and alignment with patriotic values. According to InvestingPro analysis, the company generated revenue of $14.45 million in the last twelve months, though it faces challenges with weak gross profit margins of about 6%. This news is based on a press release statement. InvestingPro subscribers have access to 18 additional key insights about AREB’s financial health and market performance.

In other recent news, American Rebel Holdings has reported its financial results for the third quarter of FY2024, with revenues reaching $2.3 million for the quarter and $9.6 million for the first nine months. The company successfully filed its overdue Q3 report, regaining compliance with NASDAQ’s filing requirements. American Rebel Holdings also announced a 1-for-25 reverse stock split, aiming to enhance the stock’s marketability and maintain compliance with NASDAQ’s minimum bid price requirement. This corporate action will reduce the number of issued and outstanding shares from approximately 15 million to about 600 thousand. In a strategic move to diversify, American Rebel has expanded into the beverage industry, launching American Rebel Light Beer, now available online in 40 states. This expansion is facilitated through a partnership with Bevstack, enhancing the brand’s digital marketplace presence. CEO Andy Ross expressed enthusiasm for these developments, highlighting the company’s commitment to growth and compliance. These recent actions reflect American Rebel’s ongoing efforts to broaden its market reach and solidify its financial standing.

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