American Rebel Holdings stock slips on pricing $13M securities offering

• American Rebel Holdings (NASDAQ:AREB) shares dropped ~16% pre-market after the firm entered into a securities purchase agreement with a single institutional investor to raise ~$13.0 million through the private placement of 11,711,712 shares of common stock (or pre-funded warrants in lieu thereof), and warrants to purchase 23,423,424 shares of common stock.
• Each share of common stock or pre-funded warrant is being sold together with accompanying warrants at a combined effective purchase price of $1.11.
• The warrants will be immediately exercisable from the date of issuance at an initial exercise price of $0.86 per share, subject to adjustments as set forth therein, and will expire five years from the date of issuance.
• The closing of the private placement is expected to occur on July 12, 2022.
• Net proceeds from the private placement will be used primarily to fund the previously announced planned acquisition of the Champion Safe companies, as well as for general working capital and administrative purposes.