American Rebel Holdings to Transition to Over-the-Counter Trading

American Rebel Holdings Inc. is set to move its stock listing from the Nasdaq exchange to the over-the-counter (OTC) marketplace. The company confirmed its board's decision not to appeal a delisting notification from Nasdaq, effectively ending its status on the regulated exchange this week.

• Effective Date: The transition to OTC trading will commence at the start of trading on February 13.
• Primary Cause: The delisting resulted from the company's sustained failure to meet Nasdaq's minimum bid price requirement of $1.00.
• Share History: The stock has undergone a cumulative reverse split ratio of 1-for-90,000 since October 2024.

Nasdaq's Rationale and Future Trading

The exchange's determination was triggered by the stock's inability to maintain a closing bid price at or above $1.00 for 30 consecutive business days. Nasdaq declined to grant an additional compliance period, a decision influenced by American Rebel's execution of multiple reverse stock splits between October 2024 and early February 2026.

Following the delisting, the company's securities are expected to continue trading under the existing ticker symbol "AREB" in the OTC market. Management has indicated its intention to apply for a listing on the OTCQB Venture Market, though approval is not assured. For shareholders, this shift often translates to reduced liquidity and potentially higher price volatility compared to a major exchange.

Should investors sell immediately? Or is it worth buying American Rebel Holdings?

Capital Structure and Share Dilution

Concurrent with its exchange status change, American Rebel has undertaken capital measures that increase its share count. Between February 5 and February 9, the company converted 131,934 Series D preferred shares into an aggregate of 659,670 shares of common stock.

In a separate transaction, Silverback Capital Corporation received 572,500 new common shares as part of a settlement agreement. Both actions were structured as private placements exempt from registration requirements. Company leadership emphasized its commitment to maintaining all necessary reporting obligations with the U.S. Securities and Exchange Commission (SEC).

The firm's stated objective remains a future return to a national securities exchange, contingent upon strengthening its operational foundation and capital position. The move to the OTCID market on February 13 marks the initial phase of this new trading structure.