American Rebel Holdings, Inc. Executes Reverse Stock Split: What Investors Need to Know
American Rebel Holdings, Inc. (NASDAQ: AREB), famously known as "America's Patriotic Brand," has announced a reverse stock split at a ratio of 1-for-9, set to take effect on October 2, 2024. This strategic move is aimed at boosting the company's stock price above the Nasdaq's minimum bid requirement of $1.00 per share in order to maintain its listing status.
The reverse stock split will consolidate approximately 9.2 million existing shares of common stock into around 1.02 million shares. Shareholders will not receive fractional shares, as any remaining interests will be rounded up to the nearest whole number of shares.
Furthermore, this adjustment will impact the company's outstanding derivative securities and equity incentive plans, with exercise prices and numbers of derivatives being proportionately adjusted. The stock will still trade on the Nasdaq under the ticker symbol AREB, but with a new CUSIP number, 02919L505.
This corporate action was approved by American Rebel Holdings' stockholders earlier this year, authorizing the board of directors to implement a reverse stock split at their discretion. The board decided on the 1-for-9 ratio on September 17, 2024.
Securities Transfer Corporation will be facilitating the exchange and payment process for the reverse stock split. Shareholders holding physical stock certificates will receive instructions on how to exchange their pre-split certificates for book-entry ownership or post-split stock certificates. Those with shares in book-entry form or through brokerage accounts do not need to take any action.
On another note, American Rebel Holdings Inc. has recently issued shares of common stock to settle an agreement with a vendor and appointed a new President for its beverage division. The company has also secured loans to support its operations but is currently facing a trademark infringement lawsuit.
In conclusion, American Rebel Holdings' reverse stock split could be a strategic move to improve its financial standing. However, potential investors should be cautious and conduct thorough research before making any investment decisions. It's essential to consider all the available data and consult with financial experts if needed.