AMMO, Inc. Completes Sale of Ammunition Manufacturing Assets to Olin Winchester
AMMO Inc (NASDAQ: POWW) has completed the sale of its ammunition manufacturing assets to Olin Winchester, marking a strategic shift to become a pure-play e-commerce company focused on GunBroker.com, the largest online marketplace for firearms and hunting products.
The transaction included the sale of AMMO's 185,000-square-foot manufacturing facility in Manitowoc, Wisconsin. The decision followed a comprehensive strategic review process starting February 2024, involving 15 potential buyers and receiving a fairness opinion from Lake Street Capital Markets.
The company will rebrand as Outdoor Holding Company to reflect its e-commerce focus. Recent GunBroker.com initiatives have improved customer engagement through enhanced checkout experience and expanded outdoor gear offerings. The company is currently working to regain compliance with Nasdaq listing requirements, having submitted an updated compliance plan by March 6, 2025.
AMMO Inc (NASDAQ: POWW) ha completato la vendita dei suoi asset di produzione di munizioni a Olin Winchester, segnando un cambiamento strategico per diventare una società esclusivamente e-commerce focalizzata su GunBroker.com, il più grande mercato online di armi da fuoco e prodotti per la caccia.
La transazione ha incluso la vendita dello stabilimento produttivo di AMMO di 185.000 piedi quadrati situato a Manitowoc, Wisconsin. La decisione è arrivata dopo un processo di revisione strategica approfondito iniziato a febbraio 2024, che ha coinvolto 15 potenziali acquirenti e ha ricevuto un parere di equità da Lake Street Capital Markets.
L’azienda cambierà nome in Outdoor Holding Company per riflettere il suo focus sull’e-commerce. Le iniziative recenti di GunBroker.com hanno migliorato l’interazione con i clienti grazie a un’esperienza di checkout ottimizzata e a un’offerta ampliata di attrezzature per attività all’aperto. Attualmente l’azienda sta lavorando per ristabilire la conformità ai requisiti di quotazione Nasdaq, avendo presentato un piano di adeguamento aggiornato entro il 6 marzo 2025.
AMMO Inc (NASDAQ: POWW) ha completado la venta de sus activos de fabricación de municiones a Olin Winchester, marcando un cambio estratégico para convertirse en una empresa exclusivamente de comercio electrónico centrada en GunBroker.com, el mayor mercado en línea de armas de fuego y productos de caza.
La transacción incluyó la venta de la planta de fabricación de AMMO de 185,000 pies cuadrados en Manitowoc, Wisconsin. La decisión siguió a un proceso exhaustivo de revisión estratégica iniciado en febrero de 2024, que involucró a 15 compradores potenciales y contó con una opinión de equidad de Lake Street Capital Markets.
La compañía cambiará su nombre a Outdoor Holding Company para reflejar su enfoque en el comercio electrónico. Las iniciativas recientes de GunBroker.com han mejorado la interacción con los clientes mediante una experiencia de pago optimizada y una oferta ampliada de equipos para actividades al aire libre. Actualmente, la empresa está trabajando para restablecer el cumplimiento de los requisitos de cotización en Nasdaq, habiendo presentado un plan de cumplimiento actualizado antes del 6 de marzo de 2025.
AMMO Inc (NASDAQ: POWW)는 탄약 제조 자산을 Olin Winchester에 매각하며, 총기 및 사냥용품 최대 온라인 마켓플레이스인 GunBroker.com에 집중하는 순수 전자상거래 기업으로 전략적 전환을 완료했습니다.
이번 거래에는 위스콘신주 매니토워크에 위치한 AMMO의 185,000평방피트 제조 시설 매각이 포함되었습니다. 이 결정은 2024년 2월부터 시작된 포괄적인 전략 검토 과정 후 내려졌으며, 15명의 잠재 구매자와 Lake Street Capital Markets의 공정성 의견을 받았습니다.
회사는 전자상거래 집중을 반영하기 위해 사명을 Outdoor Holding Company로 변경할 예정입니다. 최근 GunBroker.com의 이니셔티브는 향상된 결제 경험과 확장된 야외 장비 제공을 통해 고객 참여를 높였습니다. 회사는 2025년 3월 6일까지 업데이트된 준수 계획을 제출하며 Nasdaq 상장 요건을 다시 충족하기 위해 노력하고 있습니다.
AMMO Inc (NASDAQ : POWW) a finalisé la vente de ses actifs de fabrication de munitions à Olin Winchester, marquant un tournant stratégique pour devenir une entreprise purement e-commerce centrée sur GunBroker.com, la plus grande place de marché en ligne pour les armes à feu et les produits de chasse.
La transaction comprenait la vente de l’usine de fabrication de 185 000 pieds carrés d’AMMO située à Manitowoc, dans le Wisconsin. Cette décision fait suite à un processus d’examen stratégique approfondi débuté en février 2024, impliquant 15 acheteurs potentiels et ayant reçu un avis d’équité de Lake Street Capital Markets.
L’entreprise va changer de nom pour Outdoor Holding Company afin de refléter son orientation e-commerce. Les initiatives récentes de GunBroker.com ont amélioré l’engagement client grâce à une expérience de paiement optimisée et à une offre élargie d’équipements de plein air. La société travaille actuellement à retrouver la conformité aux exigences de cotation Nasdaq, ayant soumis un plan de conformité mis à jour avant le 6 mars 2025.
AMMO Inc (NASDAQ: POWW) hat den Verkauf seiner Munitionsfertigungsanlagen an Olin Winchester abgeschlossen und vollzieht damit eine strategische Neuausrichtung hin zu einem reinen E-Commerce-Unternehmen, das sich auf GunBroker.com konzentriert, den größten Online-Marktplatz für Schusswaffen und Jagdprodukte.
Die Transaktion umfasste den Verkauf der 185.000 Quadratfuß großen Produktionsstätte von AMMO in Manitowoc, Wisconsin. Die Entscheidung folgte einem umfassenden strategischen Überprüfungsprozess, der im Februar 2024 begann, 15 potenzielle Käufer einbezog und eine Fairness-Bewertung von Lake Street Capital Markets erhielt.
Das Unternehmen wird sich in Outdoor Holding Company umbenennen, um seinen Fokus auf E-Commerce widerzuspiegeln. Jüngste Initiativen von GunBroker.com haben die Kundenbindung durch eine verbesserte Checkout-Erfahrung und ein erweitertes Angebot an Outdoor-Ausrüstung gesteigert. Das Unternehmen arbeitet derzeit daran, die Einhaltung der Nasdaq-Listing-Anforderungen wiederherzustellen und hat bis zum 6. März 2025 einen aktualisierten Compliance-Plan eingereicht.
- Strategic transition to high-margin e-commerce business model
- Sale of manufacturing assets strengthens balance sheet
- Recent GunBroker.com improvements showing increased customer engagement
- Elimination of operating losses from ammunition segment
- Facing Nasdaq listing compliance issues
- Loss of manufacturing revenue stream and diversification
- Historical challenges with manufacturing cost competitiveness
- Difficulties in securing large government contracts
Insights
AMMO's sale of manufacturing assets transforms it into an e-commerce pure-play with stronger margins but introduces concentrated risk and uncertain valuation.
This transaction represents a fundamental strategic pivot for AMMO, Inc., effectively transforming it from a manufacturing-focused company to a pure-play e-commerce business. The company is divesting its core manufacturing operations, including the 185,000-square-foot Wisconsin facility, to focus exclusively on its digital marketplace.
Reading between the lines, several concerning factors likely drove this decision. The disclosure of "higher supply costs relative to larger competitors," "challenges in securing larger government contracts," and most tellingly, "historical operating losses in the ammunition segment" suggests the manufacturing business was consistently underperforming. This appears to be a strategic retreat from a business line where AMMO couldn't achieve competitive scale.
What's noticeably absent is any mention of the transaction value. Without this critical piece of information, it's impossible to assess whether shareholders received appropriate value for these manufacturing assets. The company merely states proceeds will be used for "general corporate purposes," offering little strategic clarity.
The ongoing Nasdaq compliance issues raise additional red flags. While not detailed, these typically relate to minimum bid price, equity requirements, or financial reporting - all fundamental concerns for investors. The parallel timing of this major asset sale with compliance challenges suggests possible interconnection between financial pressures and strategic decisions.
This transformation introduces significant concentration risk, as AMMO is now entirely dependent on GunBroker.com's performance. While potentially enabling a stronger balance sheet and focus, it fundamentally alters the company's risk profile and industry positioning.
AMMO's transition to e-commerce-only through GunBroker.com offers margin improvement and focused growth but faces execution risks in a specialized market.
The transformation of AMMO into a pure e-commerce company centered on GunBroker.com represents a significant shift toward a potentially higher-margin business model. As the "largest online marketplace for firearms, hunting and related products," GunBroker.com operates in a specialized niche with distinct competitive advantages - particularly regulatory complexity that creates barriers to entry for general e-commerce platforms.
The marketplace model is inherently scalable with attractive unit economics. Unlike manufacturing, which requires significant capital expenditure for growth, digital platforms can expand with comparatively modest incremental costs. This should theoretically improve AMMO's return on invested capital and cash flow characteristics.
Recent platform improvements mentioned - enhanced checkout experience and expanded offerings in outdoor gear - suggest management is already implementing a strategy to increase customer engagement, conversion rates, and potentially average order value. The planned rebranding to "Outdoor Holding Company" indicates an intent to broaden beyond firearms into the larger outdoor recreation market, which represents a significant expansion opportunity.
However, successful platform businesses require specific expertise in user experience, technology infrastructure, and marketplace dynamics that differ substantially from manufacturing operations. The article doesn't address whether AMMO has or plans to acquire the necessary talent to excel in this different business model.
Without specific metrics on GunBroker.com's current performance - active users, transaction volume, take rate, growth trajectory - it's difficult to assess its true potential. The specialized nature of the platform presents both opportunity (dedicated audience) and risk (regulatory scrutiny, payment processing challenges) that will require careful navigation.
Sale Transitions AMMO to an E-commerce-Focused Company Accelerating Growth Through GunBroker.com, the Largest Online Marketplace for Firearms, Hunting and Related Products
Sale Allows Company to Center its Attention on Innovation, Profitability, and Long-term Value Creation
SCOTTSDALE, Ariz., April 18, 2025 (GLOBE NEWSWIRE) -- AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO,” “we,” “us,” “our” or the “Company”), the owner of GunBroker.com, the largest online marketplace for firearms, hunting, and related products, today announced it has completed the sale of its ammunition manufacturing assets to Olin Winchester, LLC (“Olin Winchester”), a subsidiary of Olin Corporation.
This transaction represents a pivotal milestone in AMMO’s transformation into a high-margin, tech-enabled e-commerce company centered around GunBroker.com. The Company intends to focus resources on scaling its digital platform, improving user experience, and unlocking additional value for shareholders.
“This transaction marks a defining moment in AMMO’s evolution,” said Christos Tsentas, Chair of the Board’s M&A Committee. “After a thorough strategic review and collaboration with our financial and legal advisors, we are confident this sale will unlock significant value and enable AMMO to accelerate growth as a pure-play e-commerce platform. GunBroker.com is already the leader in the online firearms marketplace, and we expect this streamlined focus will allow us to double down on innovation, user engagement, and long-term profitability.”
GunBroker.com: Positioned for Scalable Growth
GunBroker.com becomes AMMO’s remaining core business and a high-potential growth engine. Recent initiatives—including enhancements to the checkout experience and expanded offerings in outdoor gear and experiences—have led to improved customer engagement and conversion. The Company anticipates that a simplified business structure and a fortified balance sheet will further fuel targeted investments, operational efficiency, and disciplined capital allocation.
Transaction Details
As part of the transaction, Olin Winchester acquired AMMO’s 185,000-square-foot manufacturing and ballistic testing facility in Manitowoc, Wisconsin.
Entering into the transaction, which was unanimously approved by AMMO’s Board and its M&A Committee, was the culmination of a comprehensive strategic review process beginning in February 2024, during which the Company worked with a team of independent advisors to engage with an array of prospective buyers. That comprehensive strategic review process included: establishing an M&A Committee comprised solely of independent directors; evaluating multiple investment banks to assist the Board and the M&A Committee, which ultimately led to the engagement of Baird; pursuing a thorough and competitive sale process that involved 15 potential buyers; selecting Lake Street Capital Markets (“Lake Street”), from among a group of firms evaluated by the M&A Committee, to conduct an independent analysis of the transaction in connection with the rendering of a fairness opinion to the Board, which opinion was sought from Lake Street regardless of whether its ultimate conclusions were favorable or unfavorable; Lake Street’s determination that the transaction was fair from a financial point of view, and that it fell within a range of possible values; and engaging in a thorough and deliberate evaluation process by the M&A Committee and the entire Board, which considered the merits and risks of the multiple bids and the proposed transaction with Olin Winchester, as well as strategic alternatives to the proposed transaction with Olin Winchester.
As previously disclosed, 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. Among other reasons, as a result of higher supply costs relative to our larger manufacturing competitors, challenges in securing larger government contracts due to our manufacturing capacity, industry headwinds, and historical operating losses in the ammunition segment diverting our resources from growth opportunities, we believe the sale of the ammunition manufacturing assets will enable us to capitalize on e-commerce growth opportunities, while allowing the Company to become a more focused, streamlined and profitable organization. Moving forward, the Company expects to focus on growing and prioritizing the profitable, high-margin GunBroker.com marketplace. 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. The Company expects to use the proceeds from the transaction for general corporate purposes, although the Board may evaluate other uses in the future when and as appropriate.
AMMO was advised by Baird and represented by Bryan Cave Leighton Paisner LLP in connection with the transaction. Lake Street Capital Markets provided a fairness opinion to the Board.
Rebranding and Next Phase
In conjunction with the sale, AMMO is beginning a formal rebranding process, including a corporate name change to Outdoor Holding Company, to better reflect its e-commerce identity and broader vision in the outdoor lifestyle and sporting goods sectors.
Additional Company Updates
Nasdaq Listing Compliance
As disclosed in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2025, the Company received an additional deficiency notification letter from The Nasdaq Stock Market LLC (“Nasdaq”), requiring the Company to submit an updated plan by no later than March 6, 2025 concerning its efforts to regain compliance with Nasdaq’s listing requirements. The Company timely submitted the updated compliance plan to Nasdaq and will provide additional details to investors as appropriate.
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 in this press release that are not statements of historical fact 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 benefits of the transaction and statements about the Company’s plans, objectives, expectations and intentions for its business following consummation of the transaction. These statements 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, risks associated with pending or threatened litigation related to the transaction; unexpected costs, charges or expenses resulting from the transaction; risks related to disruption of management time from ongoing business operations due to the transaction; failure to realize the benefits expected from the transaction; and effects of the completion of the 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 update forward-looking statements.
Contacts
For media:
Longacre Square Partners
Rebecca Kral
AMMO@longacresquare.com
For investors:
CoreIR
Phone: (212) 655-0924
IR@ammo-inc.com
Source: AMMO, Inc.
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