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American Rebel Holdings , Inc. (NASDAQ:AREB), currently trading at $1.28 and showing concerning financial health indicators according to InvestingPro analysis, announced that on June 26, it entered into a secured note purchase agreement with Streeterville Capital, LLC for a principal amount of $5,470,000. The transaction was disclosed in a press release statement and detailed in a recent SEC filing. With a market capitalization of just $8.39 million and an EBITDA of -$12.56 million in the last twelve months, this financing comes at a crucial time for the company.
According to the agreement, the note carries an original issue discount of $450,000, and American Rebel Holdings agreed to pay $20,000 to Streeterville Capital to cover legal, accounting, due diligence, and other transaction costs. These amounts were deducted from the proceeds received by the company. InvestingPro data reveals the company’s challenging financial position, with a concerning current ratio of 0.4, indicating potential difficulties meeting short-term obligations. Subscribers can access 16 additional key financial insights about AREB’s performance and outlook.
At closing, Streeterville Capital paid $375,000 directly to American Rebel Holdings, while $4,625,000 was deposited into an account at Lakeside Bank held by ARH Sub, LLC, a newly formed wholly owned subsidiary of American Rebel Holdings. This arrangement is governed by a Deposit Account Control Agreement.
The note bears interest at 10% per annum, with all principal, interest, fees, and charges due twenty-four months from the issuance date. The company may prepay any portion of the outstanding balance after 120 days. Starting six months after issuance, Streeterville Capital has the right to redeem up to $950,000 per month, payable in cash within two trading days of a redemption notice.
The note is secured by the Deposit Account Control Agreement, a guaranty from ARH Sub, LLC, and a pledge of all membership interests in ARH Sub, LLC. The agreement includes provisions allowing Streeterville Capital to increase the outstanding balance by up to 10% for certain major trigger events and 5% for minor trigger events, subject to a maximum aggregate increase of 30%.
In connection with the financing, American Rebel Holdings paid Carter, Terry & Company, Inc. a cash fee of $18,750 from the gross proceeds.
Additionally, the company reported that its subsidiary, Champion Safe Company, Inc., extended a forbearance agreement with Bank of America, N.A. through July 31, 2025, after making a $100,000 payment on June 30, 2025. The company’s financial metrics paint a challenging picture, with revenue declining by 36.78% in the last twelve months and a negative gross profit margin of -6.8%. InvestingPro’s comprehensive analysis indicates the company may face continued challenges in managing its debt obligations and maintaining sustainable operations.
This information is based on a press release statement and details from the company’s SEC filing.
In other recent news, American Rebel Holdings Inc. has secured $450,000 in financing through a deal with five accredited investors. The agreement involves promissory notes with a two-year term, providing the company with net proceeds of $315,000 after discounts and interest. The funds are intended for general working capital and may address a lawsuit with Bank of America. Additionally, American Rebel has been expanding the distribution of its American Rebel Light Beer, notably partnering with North Florida Sales to reach more consumers in Northeast Florida. The company has also been active in promotional events, with CEO Andy Ross performing at the Charlotte Motor Speedway during the Coca-Cola (NYSE:KO) 600 NASCAR weekend to promote their beer brand. American Rebel Light Beer, known for its patriotic branding and natural ingredients, has been gaining traction in several states, including Tennessee, Ohio, and Florida. The company continues to focus on expanding its national distribution, aiming to establish its beer as a leading premium domestic light lager. Recent board meetings have emphasized growth initiatives, including potential acquisitions and licensing opportunities to enhance their product portfolio.
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