American Rebel(US:AREB) Globenewswireยท2025-09-16 01:00Core Insights - American Rebel Holdings, Inc. has acquired a 30% ownership interest in 218 LLC, which owns the property at 218 3rd Avenue North, Nashville, Tennessee, to enhance stockholder equity and support long-term strategic goals [1][2][19] - The acquisition is structured through the issuance of 280,000 shares of Series D Convertible Preferred Stock, valued at $2.1 million, which is expected to improve the company's balance sheet and stockholder equity [2][3][7] - The property will serve as the future corporate headquarters and a venue for showcasing the American Rebel brand, enhancing its presence in Nashville [4][17] Transaction Structure - The transaction was initially planned as a direct real estate purchase but has been restructured to acquire 100% of the membership interests in the LLC, preserving the appraised value of $14.1 million [1][19] - This structure allows American Rebel to avoid direct real estate purchase liabilities and leverage equity instruments for funding, minimizing immediate cash dilution [7][19] - The building has historically operated on a cash-flow-positive basis, with the first floor leased to the Black Rabbit restaurant and the upper floors functioning as high-end short-term rental units [5][10] Strategic Importance - The acquisition is viewed as a strategic leap forward, positioning the company to execute its vision of creating a branded headquarters and immersive experiences for guests [4][16] - The property is strategically located near several American Rebel accounts and high-profile venues, reinforcing its importance as a revenue-generating asset and business development hub [17][20] - The company plans to enhance the short-term rental units with American Rebel branding, creating a seamless guest experience that promotes the American Rebel Light Beer [15][16] Financial Impact - The transaction is expected to immediately improve stockholder equity through the issuance of preferred equity tied to a tangible, cash-flow-positive asset [2][7] - The strategic move aligns with Nasdaq listing requirements, aiming to strengthen the company's equity position while maintaining flexibility [2][3] - The company filed a Form 8-K with the SEC to clarify the transaction mechanics, confirming that the building remains the sole asset of the LLC [18][19]