American Rebel Announces $19.9+ Million Public 8.53% Preferred Offering
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Insights
The announcement of American Rebel Holdings, Inc.'s Regulation A+ equity financing represents a strategic move to raise capital while engaging directly with the consumer base. The offering of 8.53% Series C Redeemable Convertible Preferred Stock at $7.50 per share could appeal to retail investors looking for fixed income, given the relatively high annual yield. The conversion feature into common stock also introduces a potential equity upside.
However, the inclusion of branded merchandise and experiences as perks for investment could raise questions about the seriousness of the investment proposition. While this approach might strengthen brand loyalty, it may also suggest a marketing-driven rather than investment-driven strategy, which could affect investor perception.
Furthermore, the simultaneous launch of a new beer product leverages the company's brand identity but introduces operational risks. The success of this diversification will depend on the company's ability to effectively manage production, distribution and marketing within a competitive beverage industry.
Regulation A+ offerings are designed to make it easier for smaller, growth-oriented companies to access capital and American Rebel's decision to utilize this avenue suggests an appeal to a broader, non-institutional investor base. The company's brand positioning as 'America's Patriotic brand' could resonate with a specific demographic, potentially increasing participation rates among like-minded investors.
However, the effectiveness of this strategy will hinge on the company's ability to convert brand loyalty into investment behavior. The move might also signal to the market that American Rebel is seeking alternative funding sources, possibly due to difficulties in accessing traditional capital markets. This could be a red flag for some investors, as it may indicate underlying financial or operational challenges.
A Regulation A+ offering, while accessible, still requires the issuer to meet specific SEC requirements, including the filing of an offering statement. Potential investors should scrutinize the offering circular posted on the SEC's website to understand the risks and terms associated with the Series C Preferred Stock. The compliance with these regulations is key for investor confidence and the long-term sustainability of the offering.
Additionally, the company's communication strategy, emphasizing its brand identity and offering investment perks, must align with SEC guidelines for promotional materials. Any missteps in regulatory compliance could result in penalties and damage to investor trust, impacting the company's reputation and stock performance.
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
This offering makes 2.6+ million shares of the Company’s Series C Redeemable Convertible Preferred Stock, par value
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:
Brian M. Prenoveau, CFA
MZ Group – MZ North America
AREB@mzgroup.us
+561 489 5315
FAQ
What type of financing is American Rebel Holdings, Inc. (AREB) launching?
How can investors participate in the Public Offering by American Rebel Holdings, Inc. (AREB)?
What is the price per share for the Series C Preferred Stock offered by American Rebel Holdings, Inc. (AREB)?
What dividend does the Series C Preferred Stock by American Rebel Holdings, Inc. (AREB) pay?
What perks do investors receive based on the size of their investment in American Rebel Holdings, Inc. (AREB)?
What new product is American Rebel Holdings, Inc. (AREB) launching?
