American Rebel Holdings Inc (NASDAQ: AREB) was one of the top losers on the Nasdaq Thursday following a massive share spike attributable to a 1-for-25 reverse stock split on Mar. 31.
The patriotic safety deposit box producer and self-defence accessories manufacturer’s recent financial troubles prompted this move. Investors tend to perceive it negatively.
In relation, American Rebel recently reported that it had defaulted on payments for a US$2-million-dollar credit facility from the Bank of America Corp (NYSE: BAC). The company is preparing to defend itself from a related lawsuit filed on Mar. 21 by this major financial firm.
Additionally, American Rebel’s preliminary financial results indicate that 2024 revenue will have slid by 28.7 per cent year-over-year to US$11.4 million. In 2023, a net loss of US$3.2 million was reported. These numbers highlight ongoing concerns about operational stability.
This extremely volatile stock has plummeted by over 90 per cent since Jan 1.
American Rebel’s debt is currently estimated to sit at around US$9 million with a cash balance of approximately US$0.5 million.
A new beer venture may be the company’s only hope for survival.
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American Rebel hopes nationalist suds will rectify financials
Entry into the US$110-billion-dollar U.S. beer sector will be a financial stabilizer, the patriotic-themed product manufacturer likes to believe. The company formally made its way into the brewing industry last year with the launch of American Rebel Light Beer.
Supply agreements have now been secured with major distributors like Missouri Eagle, Dichello Distributors, Best Brands, Standard Beverage Corporation, Tramonte Distributing and Clark Distributing. The company received distribution licenses for Tennessee and Kansas in mid-2024.
This alcoholic beverage is now available online in over 40 states. The suds brand held a party at Kid Rock’s Big Ass Honky Tonk Rock ‘n’ Roll Steakhouse in Nashville on Dec. 17 last year.
“It tastes like freedom!” CEO Andy Ross said recently. He is a singer-songwriter and guitarist for the rock band OK Go.
Ross just released a video about the brand’s inception. The stars-n-stripes lovin company was founded in 2015. Aside from cold ones, American Rebel makes standard safes, firearms safes, concealed carry gun holsters, backpacks, clothing and other accessories.
rowan@mugglehead.com
