American Rebel Plunges After Raising $3M Via Equity Offering
Portfolio Pulse from Shivani Kumaresan
American Rebel Holdings (NASDAQ:AREB) (NASDAQ:AREBW) has entered into a securities purchase agreement to raise approximately $3.0 million through the private placement of 686,499 shares of common stock and warrants. The shares and warrants are being sold at a combined effective purchase price of $4.37. The company intends to use the proceeds for general working capital and administrative purposes. The closing of the private placement is expected to occur on June 30, 2023. Following the announcement, AREB shares dropped by 34.3%.
June 28, 2023 | 2:59 pm
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NEGATIVE IMPACT
American Rebel's stock price dropped significantly following the announcement of a $3M equity offering.
The announcement of the equity offering, which dilutes existing shares, has led to a significant drop in the stock price of American Rebel. This indicates that investors may be concerned about the dilution of their holdings.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The equity offering could potentially impact the stock price of American Rebel's warrant (AREBW).
While the article does not directly mention the impact on AREBW, the equity offering could potentially affect the stock price of American Rebel's warrant due to the dilution of existing shares.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80