8-K: American Rebel Holdings Appoints New Auditor and Expands Beer Distribution in Ohio

American Rebel Holdings has appointed GBQ Partners as its new independent auditor and signed a distribution agreement with Bonbright Distributors to expand its beer sales in nine Ohio counties.

Summary

• American Rebel Holdings has replaced its auditor, BF Borgers CPA PC, with GBQ Partners LLC following a ban on BF Borgers by the Securities and Exchange Commission.
• GBQ Partners will audit the company's financials for the fiscal year ending December 31, 2024, and re-audit the years ended December 31, 2023 and 2022.
• The company has also signed a distribution agreement with Bonbright Distributors to distribute American Rebel Beer in nine counties in west central Ohio.
• Bonbright Distributors, a locally owned beverage distributor in the Dayton area, has a history dating back to 1934 and sells approximately 8 million cases annually.
• American Rebel Beer will also be sold at Tony Stewart's Eldora Speedway, a dirt track racing venue, starting June 5-8.

Sentiment

Score: 5

Explanation: The document contains both positive and negative elements. The new distribution agreement and venue partnership are positive, but the auditor change due to SEC action is a significant negative. The speculative nature of the securities also tempers the overall sentiment.

Positives

• The appointment of a new auditor, GBQ Partners, addresses the issue of the previous auditor being barred by the SEC.
• The distribution agreement with Bonbright Distributors expands the reach of American Rebel Beer into a new market.
• The partnership with Eldora Speedway provides a high-profile venue for promoting American Rebel Beer.
• Bonbright Distributors has a long history and a strong distribution network in the Dayton area.

Negatives

• The need to replace the auditor was due to the previous auditor being barred by the SEC, which could raise concerns about past financial statements.
• The company will need to have its 2022 and 2023 financials re-audited by the new auditor.

Risks

• The company's forward-looking statements are subject to significant risks and uncertainties.
• The success of the beer distribution agreement depends on various factors, including consumer demand and effective execution.
• The company's securities are considered highly speculative and involve significant risks, including the potential loss of the entire investment.
• There is no guarantee that the company's application to list its Series C Preferred Stock on Nasdaq Capital Market will be approved.

Future Outlook

The company aims to expand the distribution of American Rebel Beer and is working to list its Series C Preferred Stock on the Nasdaq Capital Market, though there is no guarantee of success.

Management Comments

• Brock Anderson, Chairman and CEO of Bonbright Distributors, stated they are excited to partner with American Rebel and grow the brand in Ohio.
• Andy Ross, CEO of American Rebel, said the distribution agreement with Bonbright is a great achievement and expansion of their distribution network.
• Jerry Gappens, general manager of Eldora Speedway, expressed excitement about bringing American Rebel Beer to their facility.

Industry Context

The announcement reflects a trend of beverage companies expanding their distribution networks to reach new markets. The partnership with a local distributor like Bonbright is a common strategy for entering new regions. The addition of a high profile venue like Eldora Speedway is a good marketing strategy.

Comparison to Industry Standards

• The change of auditor is not uncommon when an auditor is barred by the SEC, and the company has acted quickly to appoint a new auditor.
• Bonbright Distributors' annual sales of 8 million cases is a significant volume, indicating a strong distribution network.
• The expansion into a new market through a distribution agreement is a standard practice in the beverage industry, similar to other companies like Boston Beer Company and Constellation Brands.
• The partnership with Eldora Speedway is similar to other beverage companies sponsoring sporting events and venues to increase brand awareness, such as Anheuser-Busch's partnerships with various sports leagues.

Stakeholder Impact

• Shareholders may be concerned about the change in auditor and the need for re-audits.
• Customers in the nine Ohio counties will have access to American Rebel Beer.
• Employees of Bonbright Distributors will be involved in the distribution of American Rebel Beer.
• The partnership with Eldora Speedway will provide a new venue for American Rebel Beer sales.

Next Steps

• GBQ Partners will conduct audits for the fiscal year ending December 31, 2024, and re-audits for 2023 and 2022.
• American Rebel Beer will begin distribution in nine Ohio counties through Bonbright Distributors.
• American Rebel Beer will be available at Eldora Speedway starting June 5-8.
• The company will continue to pursue the listing of its Series C Preferred Stock on the Nasdaq Capital Market.

Key Dates

Keywords

American Rebel Beer, Distribution Agreement, Auditor Change, GBQ Partners, Bonbright Distributors, Eldora Speedway, Financial Audit, Beer Sales, Ohio, AREB