AXIL Brands and NASCAR Renew Product License Agreement Through 2027

Rhea-AI Summary

AXIL Brands (NYSE American: AXIL) has extended its product licensing agreement with NASCAR through 2027. The agreement allows AXIL to produce and sell NASCAR-branded hearing protection products, including earbuds, earmuffs, hearing devices, ear plugs, and outdoor speakers. Distribution channels include NASCAR venues across the U.S., Puerto Rico, and Canada, as well as U.S. military bases worldwide. The partnership aims to expand AXIL's market reach and introduce its products to a broader demographic while leveraging NASCAR's strong brand recognition in recreation and motorsports.

Positive

• Secured extended licensing agreement with major brand NASCAR through 2027
• Expanded distribution channels across U.S., Puerto Rico, Canada, and U.S. military bases
• Potential for increased market reach through NASCAR's established customer base

Negative

• None.

Insights

Market Research Analyst

The NASCAR licensing agreement renewal represents a strategic move for AXIL in maintaining and expanding its market presence in the motorsports sector. While the specific financial terms aren't disclosed, the deal's geographic scope covering the U.S., Puerto Rico, Canada and U.S. military bases worldwide provides significant distribution channels. NASCAR's fan base, which includes approximately 75 million followers, offers a substantial market opportunity for AXIL's hearing protection products. The multi-year commitment through 2027 provides stability for product planning and market development. However, given AXIL's current market cap of $27.4 million, the immediate revenue impact may be moderate unless the company can significantly increase market penetration among NASCAR's audience.

Financial Analyst

This licensing renewal, while positive for brand visibility, requires careful evaluation from a financial perspective. For a micro-cap company like AXIL, with a market cap of just $27.4 million, maintaining partnerships with major sports organizations like NASCAR can be a double-edged sword. While it provides credibility and distribution channels, licensing agreements typically involve royalty payments that could impact margins. The extended timeframe through 2027 offers revenue visibility, but without disclosed financial terms or historical NASCAR-related sales data, it's challenging to quantify the direct impact on AXIL's bottom line. The military base distribution channel is particularly interesting as it could provide a steady revenue stream separate from seasonal NASCAR events.

LOS ANGELES, Dec. 11, 2024 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. (“AXIL” or the “Company”) (NYSE American: AXIL), an emerging global consumer products company for AXIL^® hearing protection and enhancement products and Reviv3^® hair and skin care products, announces the extension of its product licensing agreement with NASCAR through 2027.

Under the terms of the agreement, AXIL will produce and sell NASCAR-branded earbuds, earmuffs, hearing devices, ear plugs, and outdoor speakers through NASCAR venues and distribution channels across the U.S., Puerto Rico, and Canada, as well as U.S. military bases worldwide.

“The extension of our licensing agreement with NASCAR further strengthens our partnership with one of the most iconic names in recreation and motorsports and creates significant opportunities to introduce our products into a wider market and demographic,” commented Jeff Toghraie, AXIL’s Chief Executive Officer. “NASCAR is a brand that is synonymous with passion, performance, and innovation, and this partnership underscores our shared commitment to delivering high-quality hearing protection and enhancement products and exceptional experiences to NASCAR fans. We look forward to our continued partnership and bringing even more entertainment value to the passionate NASCAR community.”

About NASCAR
The National Association for Stock Car Auto Racing (NASCAR) is the sanctioning body for the No. 1 form of motorsports in the United States and owner of 14 of the nation’s major motorsports entertainment facilities. NASCAR sanctions races in three national series (NASCAR Cup Series™, NASCAR Xfinity Series™, and NASCAR CRAFTSMAN Truck Series™), four international series (NASCAR Brasil Series, NASCAR Canada Series, NASCAR Mexico Series, NASCAR Whelen Euro Series), four regional series (ARCA Menards Series, ARCA Menards Series East & West and the NASCAR Whelen Modified Tour) and a local grassroots series (NASCAR Advance Auto Parts Weekly Series). The International Motor Sports Association™ (IMSA^®) governs the IMSA WeatherTech SportsCar Championship™, the premier U.S. sports car series. NASCAR also owns Motor Racing Network, Racing Electronics, and ONE DAYTONA. Based in Daytona Beach, Florida, with offices in five cities across North America, NASCAR sanctions more than 1,200 races annually in 11 countries and more than 30 U.S. states.

About AXIL Brands
AXIL Brands (NYSE American: AXIL) is an emerging global consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL^® brand and premium hair and skincare products under its in-house Reviv3^® brand - selling products in the United States, Canada, the European Union, and throughout Asia.

To learn more, please visit the Company's AXIL^® website at www.axilbrands.com and its Reviv3^® website at www.reviv3.com

Forward-Looking Statements
This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as “anticipate,” “believe,” “expect,” “continue,” “will,” “prepare,” “should,” and “focus,” among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management’s beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management’s control and may cause the Company’s results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) the Company’s ability to grow its net sales and operations, including developing new products and expanding internationally, and perform in accordance with any guidance; (ii) our ability to generate sufficient revenue to support the Company’s operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays the Company may experience in implementing its cost savings and efficiency initiatives; (iv) the Company’s ability to compete effectively with other hair and skincare companies and hearing enhancement and protection companies; (v) the concentration of the Company’s customers, potentially increasing the negative impact to the Company by changing purchasing or selling patterns; (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which the Company operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase the Company product costs and other costs of doing business, and reduce the Company’s earnings; (vii) the Company’s ability to engage in strategic partnerships and expand its distribution and retail channels; and (viii) the impact of unstable market and general economic conditions on the Company’s business, financial condition and stock price, including inflationary cost pressures, the possibility of an economic recession and other macroeconomic factors, geopolitical events, and uncertainty, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, including the effects of the Ukraine-Russia conflict and the Israel-Hamas conflict, and other downturns in the business cycle or the economy. There can be no assurance as to any of these matters, and potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s filings with the U.S. Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Investor Relations:
CORE IR
(516) 222-2560
investors@goaxil.com

FAQ

What products will AXIL manufacture under the NASCAR licensing agreement?

Under the NASCAR licensing agreement, AXIL will produce and sell NASCAR-branded earbuds, earmuffs, hearing devices, ear plugs, and outdoor speakers.

How long is AXIL's new licensing agreement with NASCAR?

AXIL's licensing agreement with NASCAR has been extended through 2027.

Where will AXIL's NASCAR-branded products be distributed?

The products will be distributed through NASCAR venues across the United States, Puerto Rico, and Canada, as well as U.S. military bases worldwide.

What is the strategic importance of the NASCAR agreement for AXIL stock?

The agreement strengthens AXIL's market position by partnering with a major sports brand, potentially expanding their market reach and demographic, which could positively impact stock performance.