AMMO, Inc. Announces Sale of Ammunition Manufacturing Assets to Olin Winchester
AMMO Inc. (POWW) has announced the sale of its ammunition manufacturing assets to Olin Winchester for $75 million in cash. The transaction includes the 185,000 square foot production facility and ballistic range in Manitowoc, Wisconsin. The deal, unanimously approved by AMMO's Board of Directors, is expected to close in Q2 2025.
The company will transition to focus exclusively on its profitable GunBroker.com marketplace, the largest online platform for firearms and hunting products. This strategic move aims to streamline operations and strengthen cash flow. The company plans to undergo rebranding and a corporate name change upon closing.
Additionally, AMMO disclosed that a Special Committee investigation regarding certain disclosure and accounting matters for fiscal years 2020-2023 is in its final stages. The company expects to provide updates on historical financial statements in Q1 2025, which were previously deemed unreliable.
AMMO Inc. (POWW) ha annunciato la vendita dei suoi beni di produzione di munizioni a Olin Winchester per 75 milioni di dollari in contante. La transazione include lo stabilimento di produzione di 185.000 piedi quadrati e il campo di tiro a Manitowoc, Wisconsin. L'accordo, approvato all'unanimità dal Consiglio di Amministrazione di AMMO, dovrebbe concludersi nel secondo trimestre del 2025.
L'azienda si concentrerà esclusivamente sulla sua redditizia piattaforma GunBroker.com, il più grande marketplace online per armi da fuoco e prodotti per la caccia. Questa mossa strategica mira a semplificare le operazioni e rafforzare il flusso di cassa. L'azienda prevede di intraprendere un rebranding e un cambiamento del nome aziendale al momento della chiusura.
Inoltre, AMMO ha rivelato che un'indagine della Commissione Speciale riguardante alcune questioni di divulgazione e contabilità per gli anni fiscali 2020-2023 è nelle fasi finali. L'azienda prevede di fornire aggiornamenti sui bilanci storici nel primo trimestre del 2025, che erano stati precedentemente considerati inaffidabili.
AMMO Inc. (POWW) ha anunciado la venta de sus activos de fabricación de municiones a Olin Winchester por 75 millones de dólares en efectivo. La transacción incluye la instalación de producción de 185,000 pies cuadrados y el campo de tiro en Manitowoc, Wisconsin. El acuerdo, aprobado unánimemente por la Junta Directiva de AMMO, se espera que se complete en el segundo trimestre de 2025.
La compañía se enfocará exclusivamente en su plataforma rentable GunBroker.com, el mayor mercado en línea para productos de armas de fuego y caza. Este movimiento estratégico tiene como objetivo simplificar las operaciones y fortalecer el flujo de caja. La compañía planea llevar a cabo un cambio de marca y un cambio de nombre corporativo tras la finalización.
Además, AMMO reveló que una investigación de un Comité Especial sobre ciertos asuntos de divulgación y contabilidad para los años fiscales 2020-2023 está en sus etapas finales. La compañía espera proporcionar actualizaciones sobre sus estados financieros históricos en el primer trimestre de 2025, que anteriormente se consideraron poco confiables.
AMMO Inc. (POWW)는 Olin Winchester에 7천5백만 달러에 자사의 탄약 제조 자산을 판매한다고 발표했습니다. 거래는 위스콘신주 마니토와크에 있는 185,000평방피트 규모의 생산 시설과 탄속 시험장을 포함합니다. 이 거래는 AMMO 이사회가 만장일치로 승인하였으며, 2025년 2분기에 종료될 것으로 예상됩니다.
회사는 수익성 있는 GunBroker.com 마켓플레이스에 독점적으로 집중할 예정입니다. 이는 총기 및 사냥 용품을 위한 가장 큰 온라인 플랫폼입니다. 이러한 전략적인 움직임은 운영을 간소화하고 현금 흐름을 강화할 것을 목표로 합니다. 회사는 종료 시점에 브랜드 리뉴얼과 회사명 변경을 계획하고 있습니다.
또한, AMMO는 2020-2023 회계 연도와 관련된 특정 공시 및 회계 사항에 대한 특별 위원회의 조사가 최종 단계에 접어들었다고 밝혔습니다. 이 회사는 과거 재무 제표에 대한 업데이트를 2025년 1분기에 제공할 것으로 예상하며, 이 재무 제표는 이전에 신뢰할 수 없는 것으로 간주되었습니다.
AMMO Inc. (POWW) a annoncé la vente de ses actifs de fabrication de munitions à Olin Winchester pour 75 millions de dollars en espèces. La transaction comprend l'installation de production de 185 000 pieds carrés et le champ de tir à Manitowoc, Wisconsin. Le contrat, approuvé à l'unanimité par le conseil d'administration d'AMMO, devrait se finaliser au deuxième trimestre de 2025.
La société se concentrera exclusivement sur son marché rentable GunBroker.com, la plus grande plateforme en ligne pour les armes à feu et les produits de chasse. Ce mouvement stratégique vise à rationaliser les opérations et à renforcer le flux de trésorerie. L'entreprise prévoit de procéder à un changement de marque et à un changement de nom d'entreprise lors de la clôture.
De plus, AMMO a révélé qu'une enquête menée par un comité spécial concernant certaines questions de divulgation et de comptabilité pour les exercices fiscaux 2020-2023 est en phase finale. La société s'attend à fournir des mises à jour sur les états financiers historiques au premier trimestre de 2025, qui avaient été précédemment jugés peu fiables.
AMMO Inc. (POWW) hat den Verkauf seiner Produktionsanlagen für Munition an Olin Winchester für 75 Millionen Dollar in bar bekannt gegeben. Die Transaktion umfasst die 185.000 Quadratfuß große Produktionsstätte und den Schießplatz in Manitowoc, Wisconsin. Der Deal, der einstimmig vom Vorstand von AMMO genehmigt wurde, soll im 2. Quartal 2025 abgeschlossen werden.
Das Unternehmen wird sich zukünftig ausschließlich auf seinen profitablen Marktplatz GunBroker.com, die größte Online-Plattform für Schusswaffen und Jagdprodukte, konzentrieren. Dieser strategische Schritt soll die Abläufe straffen und den Cashflow stärken. Das Unternehmen plant eine Umbenennung und einen Markenwechsel nach dem Abschluss.
Darüber hinaus gab AMMO bekannt, dass eine Untersuchung des Sonderausschusses zu bestimmten Offenlegungs- und Rechnungslegungsfragen für die Haushaltsjahre 2020-2023 in den letzten Zügen liegt. Das Unternehmen erwartet, im 1. Quartal 2025 Updates zu den historischen Finanzberichten bereitzustellen, die zuvor als unzuverlässig galten.
- Sale of ammunition assets for $75 million cash strengthens balance sheet
- Strategic focus on high-margin GunBroker.com e-commerce business
- Streamlined operations expected to improve profitability
- Ongoing investigation into accounting matters (2020-2023)
- Historical financial statements deemed unreliable
- Complete exit from manufacturing business could reduce revenue diversification
Insights
The $75 million sale of AMMO's ammunition manufacturing assets to Olin Winchester represents a pivotal strategic shift that will transform POWW into a pure-play e-commerce company focused on GunBroker.com. The transaction value represents approximately 42% of POWW's current market capitalization, providing significant cash injection to support the company's digital transformation.
The deal's structure is particularly noteworthy - it includes the 185,000 square foot Manitowoc facility and its workforce, allowing Olin Winchester to leverage operational synergies while POWW eliminates manufacturing overhead costs. The timing aligns with broader industry trends showing increased migration to digital marketplaces in the firearms sector.
However, investors should note the ongoing independent investigation into accounting matters from FY2020-2023 and the pending restatement of historical financials. These unresolved issues create uncertainty around the company's true financial position and could impact the final transaction terms.
The strategic pivot to focus exclusively on GunBroker.com positions POWW to capitalize on the growing digital transformation in the firearms industry. GunBroker.com's marketplace model offers several advantages:
- Higher margins compared to manufacturing
- Asset-light business model with lower capital requirements
- Scalable platform with network effects
- Recent checkout process improvements indicating commitment to user experience
The $75 million cash injection will provide significant resources for platform development and potential bolt-on acquisitions in the e-commerce space. The simplified business model should allow management to focus entirely on digital growth initiatives and marketplace optimization.
The disclosed accounting investigation and pending financial restatements raise serious governance concerns. The investigation spans four fiscal years (2020-2023) and involves both disclosure and accounting matters, suggesting potentially systematic issues. The lack of reliable historical financial statements significantly complicates valuation analysis and risk assessment.
While the $75 million transaction provides immediate liquidity, the pending restatements could impact the company's compliance with Nasdaq listing requirements and debt covenants. The expected Q1 2025 update on financial restatements will be important for understanding the full scope of historical accounting issues and their potential impact on the company's future operations.
Accelerates Transition to an E-commerce-Focused Company Pursuing Profitable Growth Through GunBroker.com, the Largest Online Marketplace for Firearms, Hunting and Related Products
Sale Positions Company to Strengthen its Cash Flow, Earnings and Value Creation Trajectory
This transaction, which was unanimously approved by AMMO’s Board of Directors (the “Board”), is the culmination of a comprehensive strategic review process during which the Company worked with independent advisors to engage with an array of prospective buyers. Upon completion of this transaction, the Company expects to focus on growing and prioritizing the profitable, high-margin GunBroker.com marketplace.
Christos Tsentas, Chair of the M&A Committee of the Board, commented:
“Following a thorough process supported by our independent financial and legal advisors, the Board determined that a sale of AMMO’s ammunition manufacturing assets to Olin is in the best interest of the Company’s stockholders and positions us for long-term success. We believe the Company has significant opportunities to grow and scale GunBroker.com as the e-commerce space for the firearms and shooting sports industries continues expanding. We expect this sale will enable us to capitalize on these opportunities, while allowing the Company to become a more focused, streamlined and profitable organization.”
Within GunBroker.com, the Company’s profitable e-commerce segment, actions taken to improve the checkout process and upgrade offered services in outdoor experiences have enhanced the customer experience. The successful completion of this transaction is expected to further simplify the business, while reinforcing AMMO’s cash position to support expansion and thoughtful capital allocation.
Transaction Details
The disposition will include AMMO’s 185,000 square foot production facility and ballistic range located in
The closing of the transaction is subject to satisfaction of customary conditions for a transaction of this nature and is expected to be completed in the second calendar quarter of 2025. AMMO will undertake rebranding process and complete a corporate name change upon closing the transaction.
AMMO was advised by Baird and represented by Bryan Cave Leighton Paisner LLP. Lake Street Capital Markets provided a fairness opinion to the Board.
Updates on Independent Investigation and Historical Financial Statements
As disclosed in a Form 8-K filed with the
About GunBroker
GunBroker is the largest online marketplace dedicated to firearms, hunting, shooting and related products. Third-party sellers list items on the site and Federal and state laws govern the sale of firearms and other restricted items. Ownership policies and regulations are followed using licensed firearms dealers as transfer agents. Launched in 1999, the GunBroker.com website is an informative, secure and safe way to buy and sell firearms, ammunition, shooting accessories, and outdoor gear online. GunBroker promotes responsible ownership of guns and firearms. For more information, visit: www.gunbroker.com.
Cautionary Statement Concerning Forward-Looking Statements
Statements contained or incorporated by reference in this press release that are not historical, including statements relating the expected timing, completion and effects of the proposed transaction between AMMO and Olin Winchester, are considered “forward-looking statements” within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “target,” “believe,” “expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, among others, statements about the expected timing and structure of the proposed transaction, the ability of the parties to complete the proposed transaction, the expected benefits of the transaction, the Company’s plans, objectives, expectations and intentions, and other statements that are not historical facts. Instead, they are based only on Company management’s current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed transaction; the risk that any necessary approvals may not be obtained or may be obtained subject to conditions that are not anticipated; risks that any of the other closing conditions to the proposed transaction may not be satisfied in a timely manner; risks related to potential litigation brought in connection with the proposed transaction; uncertainties as to the timing of the consummation of the proposed transaction; unexpected costs, charges or expenses resulting from the proposed transaction; risks related to disruption of management time from ongoing business operations due to the proposed transaction; failure to realize the benefits expected from the proposed transaction; and effects of the announcement, pendency or completion of the proposed transaction on the ability of the parties to retain customers and retain and hire key personnel and maintain relationships with their counterparties, and on their operating results and businesses generally. Therefore, investors should not rely on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on June 13, 2024, and additional disclosures the Company makes in its other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this Current Report on Form 8-K, and except as provided by law, the Company expressly disclaims any obligation or undertaking to any updated forward-looking statements.
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For media:
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Rebecca Kral
AMMO@longacresquare.com
For investors:
CoreIR
Phone: (212) 655-0924
IR@ammo-inc.com
Source: AMMO, Inc.
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