American Rebel provides update on Nashville property acquisition

American Rebel (AREB) issued an update regarding the structure of its previously announced transaction involving the property located at 218 3rd Avenue North, Nashville, Tennessee. The company said, “The Company remains fully committed to acquiring the property, which is central to its long-term strategic and operational plans. While the transaction was initially structured as a direct real estate purchase, the Company has elected to acquire 100% of the membership interests in the limited liability company that owns the building. This structure preserves the original valuation of $14.1 million and streamlines the closing process. In addition to clarifying the transaction structure, American Rebel believes the acquisition of the LLC-whose sole asset is the 218 3rd Avenue building-will positively impact stockholder equity. The Company has acquired an initial 30% ownership interest in LLC through the issuance of 280,000 shares of Series D Convertible Preferred Stock, valued at $2.1 million. By leveraging preferred equity and structured payments, American Rebel is adding a high-value, cash-flow-positive asset to its balance sheet. This strategic move is intended to strengthen the Company’s equity position in alignment with Nasdaq requirements, while preserving flexibility and minimizing dilution. The Company views this transaction as accretive to long-term stockholder value. The acquisition of 218 LLC via the Membership Interest Purchase Agreement is structured to: Preserve the $14.1M appraised value of the building as a balance sheet asset. Avoid direct real estate purchase liabilities by acquiring the LLC that owns the asset. Leverage equity instruments to fund the acquisition without immediate cash dilution. Immediately improve stockholder equity through the issuance of $2.1 million in preferred equity tied to a tangible, cash-flow-positive asset. American Rebel has acquired an initial 30% ownership interest in the LLC through the issuance of 280,000 shares of Series D Convertible Preferred Stock, valued at $2,100,000, is expected to strengthen the Company’s balance sheet and stockholder equity, supporting compliance with Nasdaq listing standards.”