New era: Ammo Inc. sells some production assets – Scottsdale.org

AIrpark Ammo Inc. agreed to sell its production assets to Olin Winchester LLC ammunition for $ 75 million.

Ammo Inc. It owns Gunbroker.com, the largest online firearm market, hunting and related products. The Board of Directors of AMMO Inc. unanimously approved the deal.

“After a thorough process, supported by our independent financial and legal advisers, the Council has determined that the sale of AMMO’s production assets is in the best interest in the company’s shareholders and positions us for long-term success,” said Christ Centas, chairman of M&A Council Committee.

“We believe that the company has considerable opportunities for growth and scaling of Gunbroker.com, as the e -commerce space for firearms and shooting on sports industries continues to expand. We expect this sale to allow us to take advantage of these opportunities, while allowing the company to become more focused, rationalized and profitable organization. “

Within Gunbroker.com, the company improved buyers’ experience by improving the cash desk and upgrading the services offered in outdoor experience.

The successful completion of this transaction is expected to simplify the business further, while enhancing AMMO’s monetary position to support the expansion and deliberate distribution of capital.

The deployment will include the production facility of 185,000 square feet and ballistic range in Manitovok, Wisconsin.

According to a statement, the Manitowoc facility and the employees “will complement the existing production capabilities of Olin Winchester and take advantage of the deep savings of Winchester from the scale and integration along the chain of commercial ammunition – from the extraction of raw materials, to shells, primers and charging capabilities.

Ammo Inc. It will take a rebanding process and complete a change of corporate name when the transaction is completed.

Ammo was advised by Baird and presented by Bryan Cave Leighton Paisner LLP. Lake Street’s capital markets have provided a “opinion of justice” on board.

On September 24, the Special Council Committee reserved a law firm to conduct an independent investigation focused on fiscal years 2020 to 2023, related to specific issues of disclosure and accounting.

The independent investigation is in its final stages. Previously, Ammo Inc. He revealed that the company’s financial statements and auditors’ reports should no longer be relied on. The company expects to update investors for such financial statements during the first calendar quarter.

Launched in 1999, Gunbroker.com hosts third countries who list items on the site. Federal and state laws regulate the sale of firearms and other limited objects. The market also has accessories for shooting and external gear.

Property policies and provisions are respected with the help of licensed firearms dealers as transfer agents.