Gun Safe Company Raises Capital And Looks To Keep American Pride Ringing

Picture credit: Tim Mossholder on Unsplash

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It’s arguably all about the brand.

While American Rebel Holdings Inc. AREB concentrates on building high-quality products such as safes designed to store firearms, the Lenexa, Kansas, and Nashville, Tennessee-based company aims to separate itself from its competitors by highlighting its brand focus on patriotism and rugged independence.

The quality of the company’s products is reportedly one of its prime directives, but American Rebel’s focus on its brand aims for building loyalty and an expanding customer base.

“Our brand is predicated on patriotism and quintessential American character: protecting our loved ones,” the company says. “Maintaining, protecting, and enhancing the American Rebel brand is critical to expanding our loyal enthusiasts base, network of dealers, and other partners.”

The company positions itself as a go-to patriotic brand at a time when it says “national spirit” is rekindling.

“We are proud advocates of the Second Amendment and encourage safe and responsible gun ownership,” the company says.

The company’s main product line is safes specifically designed to hold firearms. The company will soon launch a Made-in-the-USA model built in Topeka, Kansas. 

American Rebel also makes safes for other uses, including styles that can be transported through airports and those needed by retailers such as cannabis dispensaries operated by companies like Cresco Labs Inc. CRLBF to protect products overnight. American Rebel makes backpacks designed for concealed-carry needs as well as a wide range of apparel and accessories.

Raising Some Greenbacks

The company announced in early February it had raised $10.5 million in a public offering. 

It plans to use the net proceeds to repay outstanding indebtedness and for general corporate purposes, including working capital, increased research and development expenditures, and funding American Rebel’s growth strategies.

“Since it is impossible to predict with certainty the timing and amount of funds required to establish profitability, we anticipate that we will need to raise additional funds through equity or debt offerings or otherwise in order to meet our expected future liquidity requirements,” the company said.

Other players in the gun safe sector include Utah-based Liberty Safe and Security Products Inc., owned by private equity group Monomoy Capital Partners, who recently purchased Liberty from Compass Diversified Holdings CODI for $127 million, and Idaho-based Rhino Metals Inc. Meanwhile, popular gun brands in the U.S. include SIG Sauer manufactured by SIG Combibloc Group AG SCBGF and Smith & Wesson Brands Inc. SWBI.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.