Loan & DebtJul 2, 2026, 05:07 PM
American Rebel Secures $125K Loan; Converts $383K Debt to Equity
AI Summary
American Rebel Holdings Inc. entered into a Securities Purchase Agreement with 1800 Diagonal Lending, LLC for a $152,950 promissory note, receiving net proceeds of $125,000. The note carries significant fees and a high default interest rate, with a total payback of $181,628 over 15 months. Additionally, the company converted $383,000 of existing debt owed to Streeterville Capital, LLC into 2,055,130 shares of common stock through three separate exchange agreements. These transactions reflect a reliance on high-cost financing and debt-to-equity conversions, leading to potential shareholder dilution.
Key Highlights
- American Rebel Holdings Inc. secured a new $152,950 promissory note from 1800 Diagonal Lending, LLC.
- Net loan proceeds to the company were $125,000 after an original issue discount of $19,950 and $8,000 in fees.
- The total payback for the new note is $181,628 over 15 monthly payments, maturing September 30, 2027.
- Upon default, the company would owe 150% of outstanding principal plus 22% default interest.
- The lender can convert outstanding principal into restricted common stock at a 25% discount to market price upon default, limited to less than 4.99% ownership.
- The company converted $78,000 of debt to Streeterville Capital into 546,601 shares of common stock at $0.1427 per share.
- An additional $115,000 of debt was converted into 745,784 shares at $0.1542 per share, and $190,000 into 762,745 shares at $0.2491 per share.
Price Impact
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