AMERICAN REBEL HOLDINGS, INC. (NASDAQ: AREB) ANNOUNCES EFFECTIVENESS OF 1-FOR-9 REVERSE STOCK SPLIT AT THE OPEN OF TRADING ON OCTOBER 2, 2024

Rhea-AI Summary

American Rebel Holdings, Inc. (NASDAQ: AREB) has announced the effectiveness of a 1-for-9 reverse stock split of its outstanding common shares, effective October 2, 2024. The company's stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market under the same symbol 'AREB' with a new CUSIP number: 02919L505.

The reverse split aims to help the company regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share. Key details include:

• Every 9 shares will be exchanged for 1 share
• Fractional shares will be rounded up
• Post-split, approximately 1.06 million shares will be outstanding
• The authorized number of common stock shares remains unchanged

Securities Transfer is acting as the exchange agent for the reverse split. Stockholders with shares in book-entry form or brokerage accounts need not take action, while those with certificates will receive instructions for the exchange process.

Positive

• Potential compliance with Nasdaq's minimum bid price requirement
• Reduction in outstanding shares from 9.5 million to approximately 1.06 million

Negative

• Reverse stock split may be perceived negatively by some investors
• Risk of not achieving desired share price increase post-split

Insights

Financial Analyst

American Rebel Holdings' 1-for-9 reverse stock split is a significant move aimed at regaining compliance with Nasdaq's minimum bid price requirement of $1.00 per share. This action reduces the outstanding shares from approximately 9.5 million to 1.06 million, potentially increasing the stock price proportionally.

While reverse splits don't directly impact a company's market value, they can have mixed implications:

• Positive: It may attract institutional investors who have minimum share price requirements.
• Negative: It could be perceived as a sign of financial distress, potentially deterring some investors.

The effectiveness of this move depends on the company's ability to maintain the higher share price post-split. Investors should monitor the stock's performance closely in the coming weeks to gauge market reaction and the company's ability to sustain compliance with Nasdaq requirements.

Market Research Analyst

The reverse stock split by American Rebel Holdings is a strategic maneuver that warrants careful analysis. While it doesn't change the company's fundamental value, it can significantly impact market perception and trading dynamics:

• Increased visibility: A higher share price may attract more analyst coverage and institutional interest.
• Reduced liquidity: Fewer outstanding shares could lead to wider bid-ask spreads and potentially increased volatility.
• Psychological impact: Some retail investors may perceive the stock as more valuable at a higher price point.

However, the key concern is whether this move addresses underlying business issues. Investors should focus on the company's financial health, growth prospects and ability to generate shareholder value beyond this technical adjustment. The market's long-term response will ultimately depend on American Rebel's operational performance and strategic execution.

Nashville, TN, Oct. 02, 2024 (GLOBE NEWSWIRE) -- American Rebel Holdings, Inc. (NASDAQ: AREB) — America’s Patriotic Brand (the “Company”), today announced the effectiveness of its 1-for-9 reverse stock split of its outstanding shares of common stock, par value $0.001 per share (the “Common Stock”), as of 12:00 a.m. on October 2, 2024.

The Company’s Common Stock will begin trading on a reverse stock split-adjusted basis at the opening of the Nasdaq Capital Market (“Nasdaq”) on Wednesday, October 2, 2024. Following the reverse stock split, the Common Stock will continue to trade on Nasdaq under the symbol “AREB” with the new CUSIP number, 02919L505. The reverse stock split is intended for the Company to regain compliance with the minimum bid price requirement of $1.00 per share of common stock for continued listing on Nasdaq.

Key information

New CUSIP Number: 02919L505
Every 9 shares will be exchanged for 1 share
Fractional Shares will be rounded up
Post spilt approximately 1.06M shares will be outstanding

The reverse stock split will not change the authorized number of shares of our Common Stock. No fractional shares will be issued in connection with the reverse stock split and all such fractional interests will be rounded up to the nearest whole number of shares of Common Stock.

In addition, the reverse stock split will apply to the Common Stock issuable upon the exercise of the Company’s outstanding derivative securities, with proportionate adjustments to be made to the exercise prices and number of derivates thereof and under the Company’s equity incentive plans.

The reverse stock split will reduce the number of issued and outstanding shares of the Company’s common stock from approximately 9.5 million to approximately 1.06 million.

Securities Transfer Corporation is acting as the exchange agent and paying agent for the reverse stock split. Stockholders holding their shares in book-entry form or in brokerage accounts need not take any action in connection with the reverse stock split.

Securities Transfer Corporation
2901 N Dallas Parkway
Suite 380
Plano, Texas 75093
(469) 633-0101
stctransfer.com

Securities Transfer Corporation will provide instructions to any stockholders with certificates regarding the process in connection with the exchange of pre-reverse stock split stock certificates for ownership in book-entry form or stock certificates on a post-reverse stock split basis. Stockholders are encouraged to contact their bank, broker or custodian with any procedural questions.

About American Rebel Holdings, Inc.

American Rebel Holdings, Inc. (NASDAQ: AREB) has operated primarily as a designer, manufacturer and marketer of branded safes and personal security and self-defense products and has recently transitioned into the beverage industry through the introduction of American Rebel Beer by its wholly-owned subsidiary, American Rebel Beverages, LLC. The Company also designs and produces branded apparel and accessories. To learn more, visit www.americanrebel.com and www.americanrebelbeer.com. For investor information, visit www.americanrebel.com/investor-relations .

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company 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 our ability to raise adequate working and expansion capital, our ability to efficiently incorporate acquisitions into our operations, the use of non-GAAP based pro forma financial estimates, our ability to introduce new products, our ability to meet production demands, our ability to expand our sales organization to address existing and new markets that we intend to target, our ability to meet or exceed financial and reporting estimates, any effects of the reverse stock split, our ability to continue to meet Nasdaq listing requirements, 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, 2023. 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.

SOURCE: American Rebel Holdings, Inc.

Company Contact: 
info@americanrebel.com

Investor Relations:
Brian Prenoveau
MZ North America
+1 (561) 489-5315
AREB@mzgroup.us

FAQ

What is the reverse stock split ratio for American Rebel Holdings (AREB) announced on October 2, 2024?

American Rebel Holdings (AREB) announced a 1-for-9 reverse stock split effective October 2, 2024.

Why did American Rebel Holdings (AREB) implement a reverse stock split?

The reverse stock split is intended to help American Rebel Holdings (AREB) regain compliance with Nasdaq's minimum bid price requirement of $1.00 per share for continued listing.

How will the reverse split affect the number of outstanding shares of AREB?

The reverse split will reduce the number of outstanding shares of AREB from approximately 9.5 million to approximately 1.06 million.

What happens to fractional shares resulting from AREB's reverse stock split?

Fractional shares resulting from AREB's reverse stock split will be rounded up to the nearest whole number of shares.