AREB

American Rebel Holdings($AREB) Plunges 98% Amid Major Shareholder Exodus and $16K Revenue Mystery

04/09/2025 15:29

American Rebel Holdings Inc ($AREB) has seen its stock plummet by over 98% in the past six months, drawing attention to recent large-scale insider selling and extreme price volatility. The small-cap company, which operates in security products and beverage sectors through its Champion Safe Company subsidiary and recently launched 'American Rebel Light Beer,' is attempting to diversify its business. However, recent financial data reveals the company generated just $15,998 in revenue, creating a significant imbalance with its current market capitalization of approximately $7 million. A notable insider trading pattern involves major shareholder Kingdom Building, Inc. Between August 23 and September 30, 2024, Kingdom Building executed 23 separate sales totaling over 2 million shares with an aggregate value of approximately $718,000. Interestingly, immediately following this sustained selling, the same shareholder purchased $80,001 worth of shares on October 1, 2024. According to company disclosures, these transactions were related to Series D Convertible Preferred Stock that could convert to common shares under certain conditions, pursuant to a Settlement Agreement dated October 1, 2024. This insider selling activity preceded a dramatic stock collapse. $AREB's share price plunged from $189 on October 1, 2024, to $98 just one day later, continuing its downward trajectory until reaching $1.75 by late March 2025. In response to the price decline, the company implemented a 1-for-25 reverse stock split on March 31, 2025. This action reduced the outstanding shares from approximately 10.6 million to 423,000, likely aimed at maintaining compliance with Nasdaq's minimum $1 bid price requirement. Following the reverse split, the stock suddenly surged to $19.5 on April 4, 2025. On that same day of the price spike, another major shareholder, HRT FINANCIAL LP, recorded a substantial purchase of 230,223 shares (worth $2,776,489). However, just three days later on April 7, the same institution sold 181,652 shares (worth $2,417,788). This rapid buy-sell cycle has further intensified the stock's extreme volatility. Meanwhile, the company faces legal challenges. On July 29, 2024, American Rebel announced it had received notice of a lawsuit filed in U.S. District Court by Liberty Safe and Security Products, Inc. The impact of this legal dispute on the company's safe business remains unclear. On the business diversification front, the company entered the beverage market with the September 2024 launch of 'American Rebel Light Beer.' While the company claims to have achieved market penetration in several states including Ohio, Tennessee, and Missouri, this hasn't yet translated into improved financial performance. Most recently, on April 7, 2025, the company issued a corporate update highlighting "recent key milestones and strategic growth initiatives." However, the stock price declined from $10.61 to $9.1 following this announcement. Examining $AREB's ownership structure reveals very low insider ownership at 0.16% and institutional ownership at 1.92%. The short interest stands at 5.35%, with a particularly notable short borrow fee rate of 618.30% as of April 8, 2025—an extremely high level suggesting significant market pessimism about the stock. $AREB currently faces a complex set of challenges including extreme volatility, minimal revenue, continued insider selling, and precipitous stock price decline. Despite attempts at reverse splits and business diversification, concerns about the company's fundamental financial health remain unresolved. Investors should carefully consider these risk factors when evaluating this security.