American Rebel Holdings Inc (OTCQB:AREB) revealed that it has seen an increase in sales of its gun safes and concealed carry backpacks driven by a wave of Americans shopping for firearms.
"We're shipping safes to our dealers as fast as we can make them," American Rebel CEO Andy Ross said in a statement on Friday.
Investors responded well, sending shares nearly 6.7% higher to $0.12 on the OTC Markets.
News reports across the country have captured long lines at gun stores as protests, looting and riots increase already high levels of uncertainty, the company added.
"Earlier this week President Donald Trump announced he would deploy the US Military to stop the "riots and lawlessness," further stimulating demand for individuals to seek guns," the firm said.
One survey of firearm sales found sales up 78% year-over-year for the last week of May and an online ammo dealer reports sales up over 600% from last year, the company also highlighted.
American Rebel also noted that the FBI has reported more than 3 million background checks through its National Instant Criminal Background Check System (NICS) last month, the third highest monthly total on record. In fact, May 2020's total of 3,091,455 and March 2020's total of 3,740,688 are the third highest and the highest monthly total to date.
The company said it's currently focused on fulfilling the need for an "ever-growing gun storage solution," while also operating in the concealed carry market to meet the needs of nearly 20 million concealed carry permit holders, as well as individuals exercising their Second Amendment rights in 11 states not required to have permits.
American Rebel, which has offices in Nashville, Tennessee and Kansas City, sells coats and backpacks to hold concealed weapons priced between $69 to $200.
The US gun safe market is worth $2 billion and the concealed carry market is worth over $1 billion and both are poised for continued growth as gun sales have increased over 60% since 2010 and there are an estimated 400 million guns in the US alone, according to industry estimates.
The increase in gun sales and gun safe sales has been good for publicly-traded companies such as Smith & Wesson (SWBI) which hit its 52-week high of $16.28 on Tuesday, a level not topped seen since September 2017, added the company
Meanwhile, ammunition maker Vista Outdoors (VSTO) hit its 52-week high of $11.96 on Monday, noted American Rebel.