American Rebel Holdings, Inc. Announces Reverse Stock Split
American Rebel Holdings, Inc. (NASDAQ: AREB) has made a significant announcement regarding its common stock. On March 27, the company disclosed plans to implement a 1-for-25 reverse stock split effective at 12:00 a.m. Eastern Time on March 31, 2025. This strategic move aims to enhance the company's share pricing and marketability.
Impact of the Reverse Stock Split
The reverse stock split is intended to elevate the share price of American Rebel's Common Stock, thus improving its eligibility for trading on various platforms. Following this split, the stock is set to resume trading on The Nasdaq Capital Market under the existing ticker symbol "AREB." A new CUSIP number will also be issued, which is 02919L604.
Purpose of the Stock Split
This reverse stock split serves two key objectives:
- Enhancement of Marketability: By increasing the share price through the reverse split, American Rebel is positioning itself for better trading opportunities.
- Compliance with Nasdaq Listing Requirements: The reverse split is a measure to ensure adherence to the minimum bid price requirement of $1.00 per share, crucial for maintaining a listing on Nasdaq.
Key Information for Shareholders
Here are some important details surrounding the reverse stock split:
- Exchange/Split Rate: 1-for-25
- New CUSIP: 02919L604
- Date of Record: March 31, 2025
- Transfer Agent: Securities Transfer Corporation
The company emphasizes that there will be no change to the authorized number of shares. Importantly, fractional shares will not be issued; instead, any fractions will be rounded up to the nearest whole share, protecting the interests of shareholders.
Round Lot Shareholder Protection
To further safeguard shareholder interests, the company has introduced a Round Lot Shareholder Protection feature. This ensures that shareholders who hold a "round lot" (typically 100 shares) prior to the split will retain at least 100 shares afterward. This measure is vital for maintaining market stability and shareholder confidence.
Reverse Stock Split Mechanics
The reverse stock split will reduce the total number of outstanding shares from approximately 15.0 million to between 600,000 and 700,000, based on the split's effect and the adjustments for round lot protection. Shareholders holding their shares in book-entry form or through brokerage accounts are advised that they will not need to take any action for the reverse split.
In a typical process, DTC will consolidate shareholder requests for rounding shares. Approximately four business days post-split, DTC will calculate the total required round-up shares, leading to an enhancement of accounts for stockholders.
About American Rebel Holdings, Inc.
American Rebel Holdings, Inc. (NASDAQ: AREB) is widely recognized as a designer and manufacturer of branded safe products and personal security items. Moreover, the company is venturing into new markets, notably the beverage sector with its innovative American Rebel Light Beer. It also offers a diverse range of branded apparel and accessories.
For inquiries about the reverse stock split or more information about the company, stockholders can reach out via email to info@americanrebel.com.
Frequently Asked Questions
What is a reverse stock split?
A reverse stock split is a process where a company reduces the number of its outstanding shares while increasing the share price proportionately. This helps enhance the marketability of the stock.
Why is American Rebel implementing a reverse stock split?
The primary reasons are to improve the stock's marketability and ensure compliance with Nasdaq's minimum bid price requirement.
When will the reverse stock split take effect?
The reverse stock split will take effect on March 31, 2025, at 12:00 a.m. Eastern Time.
Will shareholders lose shares due to the reverse stock split?
No, shareholders holding 100 or more shares prior to the reverse stock split will retain at least 100 shares after the split.
Who should shareholders contact for more information?
Shareholders can email info@americanrebel.com for inquiries regarding the reverse stock split or company details.
