American Rebel Announces $19.9+ Million Public 8.53% Preferred Offering - Updated
American Rebel Holdings, Inc. (AREB) announces a Regulation A+ equity financing of up to $19,999,995 through a Public Offering of Series C Redeemable Convertible Preferred Stock. Investors can purchase 2.6+ million shares at $7.50 per share, with a 8.53% annual yield. The offering includes perks like hats, koozies, and VIP experiences. The company also launches America's Patriotic beer. CEO Andy Ross emphasizes the brand's patriotism and customer relationships.
The introduction of Regulation A+ equity financing by American Rebel Holdings, Inc. is a strategic move to diversify its capital structure and engage a broader investor base. The offering of 8.53% Series C Redeemable Convertible Preferred Stock is notable for its relatively high dividend yield, which stands above the average preferred stock dividend rates, typically ranging between 4% and 6%. This could indicate an aggressive approach to attract investors, possibly due to the company's specific capital needs or to fund growth initiatives.
From a financial perspective, the conversion feature allowing preferred stock to be turned into common stock at a ratio of 5:1 could potentially dilute the value of existing common shares. However, it also presents an opportunity for investors to participate in the equity upside. The impact on the company's stock price will depend on the market's perception of this balance between dilution risk and growth potential.
Furthermore, the use of perks to incentivize investment is an unusual tactic that may appeal to the company's target demographic. While this may not have a direct financial impact, it could foster brand loyalty and enhance customer-investor engagement.
Launching a new product, American Rebel Light Beer, alongside the equity financing, suggests a synergistic marketing strategy aimed at cementing the company's brand identity. By aligning the product launch with patriotic themes, the company is targeting a niche demographic, which could potentially lead to a strong customer base if the branding resonates with the intended audience.
However, the beverage market is highly competitive and the success of the new beer line will rely on effective differentiation. Given that the company is leveraging its brand's patriotic appeal, it will be important to monitor consumer reception and sales data post-launch to assess the efficacy of this strategy.
It is also worth noting that while the thematic branding may attract a specific segment of consumers, it could also limit the brand's appeal to a broader market. This could have implications for the long-term scalability of the product line.
The utilization of Regulation A+ allows American Rebel Holdings to raise capital from non-accredited investors, expanding the potential investor pool. This democratization of investment opportunities aligns with the company's branding of inclusivity and patriotism. However, it also introduces regulatory complexities that the company must navigate.
Investors should be aware that Regulation A+ offerings are subject to certain limitations and risks, including less stringent disclosure requirements compared to traditional public offerings. It is important for potential investors to thoroughly review the offering circular and understand the terms of the preferred stock, including conversion rights and dividend payments.
The offering's success will largely hinge on the company's ability to communicate the value proposition to potential investors and comply with the ongoing reporting obligations required under Regulation A+.
03/15/2024 - 10:22 AM
Nashville, TN, March 15, 2024 (GLOBE NEWSWIRE) -- American Rebel Holdings, Inc. (NASDAQ: AREB) ("American Rebel" or the "Company"), is pleased to announce the launch of a Regulation A+, equity financing of up to $19,999,995 8.53% Series C Redeemable Convertible Preferred Stock (the “Public Offering”). This Public Offering is a watershed event for the Company and allows anyone 18 years or older to log onto the American Rebel Public Offering website at https://invest.americanrebel.com/ and with a click of a button subscribe to the offering. A copy of the Company’s offering circular for the Public Offering has been posted at https://www.sec.gov/Archives/edgar/data/1648087/000149315224009903/form253g2.htm . Investors may also review other securities filings on the Security and Exchange Commission’s website at https://www.sec.gov/edgar/browse/?CIK=1648087&owner=exclude .
This offering makes 2.6+ million shares of the Company’s Series C Redeemable Convertible Preferred Stock, par value $0.00 1 per share, which we refer to as the Series C Preferred Stock, available for purchase at $7.50 per share. The Series C Preferred Stock pays a $0.16 per share per quarter dividend at an annual yield of approximately 8.53% and is convertible into five shares of the Company’s common stock for each share of the Series C Preferred Stock. In addition, investors will receive perks based on the size of investment, such as hats, koozies, t-shirts, tank tops, guitars and VIP experiences to proudly display their participation as a shareholder of American Rebel.
Digital Offering, LLC, is acting as the sole lead managing selling agent for the Offering.
In addition to the launch of the Reg A capital offering, American Rebel is launching America’s Patriotic, God-Fearing, Constitution-Loving, National Anthem Singing, Stand Your Ground Beer with a proven beverage development company and co-packer. For more information on American Rebel Light Beer, go to americanrebelbeer.com .
Andy Ross, Chief Executive Officer of American Rebel, commented, “American Rebel is America’s Patriotic brand. Our greatest asset has long been our relationship with our customers who purchase our products to proclaim their love for this country and freedom and making an investment in American Rebel available to the general public through Regulation A+ expands our relationship with our patriotic family. Bringing our customers closer while aligning our interests and providing them another avenue for those customers to express themselves through stock ownership will serve to strengthen American Rebel as we position for the future. American Rebel Beer is the only beer we’re drinking round here!”
About American Rebel Holdings, Inc.
American Rebel Holdings, Inc. (NASDAQ: AREB) operates primarily as a designer, manufacturer and marketer of branded safes and personal security and self-defense products. The Company also designs and produces branded apparel and accessories and is entering the beverage business. To learn more, visit www.americanrebel.com . For more information on American Rebel Beer, visit www.americanrebelbeer.com . For investor information, visit www.americanrebel.com/investor-relations .
The Offering will be made by means of the Offering Circular. The securities offered by American Rebel are highly speculative. Investing in shares of American Rebel involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. American Rebel intends to list the Series C Preferred Stock offered under Offering Circular on Nasdaq Capital Market and doing so entails significant ongoing corporate obligations including but not limited to disclosure, filing and notification requirements, as well compliance with applicable continued quantitative and qualitative listing standards. The listing of the Company’s Series C Preferred Stock on the Nasdaq Capital Market is not a condition of the Company’s proceeding with the Public Offering, and no assurance can be given that our application to list on Nasdaq Capital Market will be approved or that an active trading market for our Series C Preferred will develop. For additional information on American Rebel, the Offering and any other related topics, please review the Offering Statement that can be found at: sec.gov/Archives/edgar/data/1648087/000149315224009322/partiiandiii.htm Additional information concerning risk factors related to the Offering, including those related to the business, government regulations, intellectual property and the offering in general, can be found in the section titled “Risk Factors” of the Offering Statement.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. American Rebel Holdings, Inc., (NASDAQ: AREB; AREBW) (the “Company,” "American Rebel,” “we,” “our” or “us”) desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "forecasts" "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include actual use of proceeds from the private placement, effects of the private placement on the trading price of our securities, implied or perceived benefits resulting from the receipt of funds from the private placement, our ability to comply with the covenants, representations and warranties contained in the purchase agreement with the investor in the private placement, our ability to effectively execute our business plan, and the Risk Factors contained within our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.
Company Contact: info@americanrebel.com
Investor Relations: AREB@mzgroup.us
What is the ticker symbol for American Rebel Holdings, Inc.?
The ticker symbol for American Rebel Holdings, Inc. is AREB.
What is the total amount of equity financing announced in the Public Offering?
American Rebel Holdings, Inc. announced a Regulation A+ equity financing of up to $19,999,995 in the Public Offering.
How many shares of Series C Redeemable Convertible Preferred Stock are available for purchase?
2.6+ million shares of American Rebel Holdings, Inc.'s Series C Redeemable Convertible Preferred Stock are available for purchase.
What is the price per share for the Series C Preferred Stock?
The price per share for American Rebel Holdings, Inc.'s Series C Preferred Stock is $7.50.
What is the annual yield for the Series C Preferred Stock?
The Series C Preferred Stock offers an annual yield of approximately 8.53%.
Who is acting as the sole lead managing selling agent for the Offering?
Digital Offering, is acting as the sole lead managing selling agent for the Offering.
What perks are available for investors based on the size of their investment?
Investors will receive perks like hats, koozies, t-shirts, tank tops, guitars, and VIP experiences based on the size of their investment.
What new product is American Rebel launching?
American Rebel is launching America's Patriotic beer.
Where can more information on American Rebel Light Beer be found?
More information on American Rebel Light Beer can be found at americanrebelbeer.com.
Who is the Chief Executive Officer of American Rebel Holdings, Inc.?
Andy Ross is the Chief Executive Officer of American Rebel Holdings, Inc.
