AMMO Completes Asset Sale, Shifts Focus to E-commerce Growth

AMMO sells its ammunition assets to focus on e-commerce growth through GunBroker.com, enhancing digital innovation and profitability.

Overview of the Transition

AMMO, Inc. has finalized the sale of its ammunition manufacturing assets to Olin Winchester, marking a pivotal shift towards becoming an e-commerce-centric entity centered on GunBroker.com, the largest online firearms marketplace. This strategic transition aims to boost AMMO’s innovation, profitability, and long-term growth as it emphasizes its digital platform and streamlines operations. Following a comprehensive strategic review and the involvement of multiple advisors, the sale is anticipated to enhance customer engagement and operational efficiency while securing capital for future investments. As part of this restructuring, AMMO is set to rebrand as the Outdoor Holding Company, aligning with its broader vision in the outdoor lifestyle market.

Potential Benefits of the Sale

• The completion of the sale to Olin Winchester signifies a major strategic pivot for AMMO, allowing the company to concentrate on its profitable e-commerce business, GunBroker.com.
• This transaction is expected to unlock considerable shareholder value and strengthen AMMO’s growth potential as a dedicated e-commerce platform.
• AMMO foresees that refining its business structure will enhance operational efficiency and capital allocation, enabling GunBroker.com to pursue scalable growth opportunities.
• The impending rebranding to Outdoor Holding Company demonstrates AMMO’s commitment to its e-commerce identity and the wider outdoor lifestyle sector.

Potential Challenges Ahead

• The divestiture of its manufacturing assets could indicate persistent issues within the manufacturing segment, such as heightened supply costs and previous operating losses, suggesting challenges in maintaining competitiveness.
• The rebranding to Outdoor Holding Company may signal a significant strategic realignment, which could lead to confusion among current customers and stakeholders.
• AMMO is currently under scrutiny by Nasdaq for failing to meet listing requirements, raising concerns about potential financial instability or operational hurdles that may worry investors.

Frequently Asked Questions

What is the recent sale involving AMMO, Inc.?

AMMO, Inc. has sold its ammunition manufacturing assets to Olin Winchester, marking a significant shift towards e-commerce growth through GunBroker.com.

How will this sale affect GunBroker.com?

The sale enables AMMO to focus on scaling GunBroker.com, enhancing user experience, and boosting profitability as a technology-driven e-commerce platform.

What does AMMO plan to do with the proceeds from the sale?

AMMO plans to utilize the funds from the sale for general corporate purposes and explore other opportunities for future growth.

Will AMMO change its corporate identity?

Yes, AMMO is initiating a rebranding process, transitioning to Outdoor Holding Company, which will reflect its focus on e-commerce.

What steps did AMMO take prior to finalizing the sale?

AMMO conducted an extensive strategic review, which included engaging independent advisors and evaluating multiple bids from potential buyers.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$POWW Hedge Fund Activity

In the most recent quarter, 48 institutional investors have increased their positions in $POWW shares, while 50 have decreased their holdings.

Here are some of the notable transactions:

• BALENTINE LLC added 16,020,000 shares (increased significantly) during Q4 2024, valued at approximately $17,622,000.
• KANEN WEALTH MANAGEMENT LLC increased their holdings by 3,702,523 shares (significant increase) in Q1 2025, valued at around $5,109,481.
• JB CAPITAL PARTNERS LP added 550,000 shares (significant increase) in Q4 2024, valued at an estimated $605,000.
• BRIDGEWAY CAPITAL MANAGEMENT, LLC decreased their holdings by 295,783 shares (25.1% reduction) in Q4 2024, approximately valued at $325,361.
• DIMENSIONAL FUND ADVISORS LP reduced their position by 212,420 shares (22.0% decrease) in Q4 2024, valued at about $233,662.
• DEUTSCHE BANK AG added 200,771 shares (611.4% increase) in Q4 2024, worth an estimated $220,848.
• SUSQUEHANNA INTERNATIONAL GROUP, LLP increased their holdings by 182,178 shares (259.5% increase) in Q4 2024, valued at approximately $200,395.

To monitor hedge funds’ stock portfolios, check out Quiver Quantitative’s institutional holdings dashboard.

Full Press Release

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 the completion of the sale of its ammunition manufacturing assets to Olin Winchester, LLC (“Olin Winchester”), a subsidiary of Olin Corporation.

This sale represents a crucial milestone in AMMO’s transformation into a tech-driven, high-margin e-commerce entity centered around GunBroker.com. The Company intends to redirect its resources toward scaling its digital platform, improving user experience, and generating further value for its shareholders.

“This transaction marks a defining moment in AMMO’s evolution,” stated Christos Tsentas, Chair of the Board’s M&A Committee. “After a comprehensive strategic review and collaboration with financial and legal advisors, we believe this sale will unlock significant value and enable AMMO to accelerate growth as a pure-play e-commerce platform. GunBroker.com is already a leader in the online firearms marketplace, and we expect this more focused approach will enhance our innovation, user engagement, and long-term profitability.”

GunBroker.com: Positioned for Scalable Growth

GunBroker.com now stands as AMMO’s core business and a high-potential growth driver. Recent initiatives—such as improving the checkout experience and expanding its outdoor gear offerings—have resulted in increased customer engagement and conversion rates. The Company believes that a simplified business structure and a stronger balance sheet will further support targeted investments, operational efficiency, and disciplined capital allocation.

Transaction Details

As part of the transaction, Olin Winchester has acquired AMMO’s 185,000-square-foot manufacturing and ballistic testing facility located in Manitowoc, Wisconsin.

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AMMO Inc. Finalizes Strategic Sale of Ammunition Manufacturing Assets

AMMO, Inc. has unanimously approved a significant transaction, marking the conclusion of a strategic review that began in February 2024. The company collaborated with a team of independent advisors to engage multiple prospective buyers, which included establishing a dedicated M&A Committee of independent directors. This committee evaluated several investment banks, ultimately hiring Baird for guidance.

The review led to a competitive sale process involving 15 potential buyers. Lake Street Capital Markets was selected from among various firms to conduct an independent analysis and provide a fairness opinion to the Board. Despite the fluctuations in market values, Lake Street determined the transaction was financially fair. This comprehensive evaluation process considered the merits and risks of multiple bids, including one from Olin Winchester, alongside various strategic alternatives.

AMMO believes the sale of its ammunition manufacturing assets will unlock significant growth potential in the rapidly expanding e-commerce space, particularly through GunBroker.com. Contributing factors for this sale include higher supply costs, difficulties in securing larger government contracts, and the historical operational losses in the ammunition segment that have limited growth opportunities. By selling these assets, AMMO aims to focus on a more streamlined and profitable organization.

The company is prioritizing expansion in the high-margin GunBroker.com marketplace moving forward. The completion of the sale is also anticipated to simplify AMMO’s operational structure while improving its cash reserves for better capital allocation. Proceeds from the transaction will primarily serve general corporate purposes, although future evaluations on capital use are possible.

For this transaction, AMMO utilized Baird as its strategic advisor and was represented by Bryan Cave Leighton Paisner LLP. Lake Street Capital Markets provided the Board with a fairness opinion to guide their decision-making.

Rebranding and the Next Chapter

In line with this sale, AMMO is initiating a rebranding effort, including a corporate name change to
Outdoor Holding Company

to better reflect its e-commerce identity and ambitions in the outdoor lifestyle and sporting goods markets.

Company Updates

Nasdaq Listing Compliance

In the latest Current report filed with the SEC on February 25, 2025, AMMO disclosed that it received a notification letter regarding deficiencies in compliance with the Nasdaq listing requirements. The company submitted an updated compliance plan to Nasdaq by the deadline of March 6, 2025, and will keep investors informed as needed.

About GunBroker

GunBroker is the largest online marketplace for firearms, hunting, shooting, and related products. It allows third-party sellers to list items while ensuring all transactions comply with federal and state laws through licensed dealers. Since its launch in 1999, GunBroker.com has provided a secure environment for buying and selling firearms and outdoor gear. The platform promotes responsible gun ownership. For further information, visit:

www.gunbroker.com

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Cautionary Statement on Forward-Looking Statements

This press release includes “forward-looking statements,” indicating future events or trends. These statements are based on current management beliefs and assumptions and are subject to uncertainties, risks, and changes beyond the company’s control. Factors that could materially affect actual results include litigation risks related to the transaction, unexpected costs, and the potential disruption of ongoing business operations. Investors should refer to the “Risk Factors” section of the Company’s Annual report on Form 10-K filed with the SEC on June 13, 2024, for more details. Forward-looking statements are accurate as of the date of this Current report and the Company disclaims any obligation to update them as required by law.

Contact Information

For media inquiries:
Longacre Square Partners
Rebecca Kral
[email protected]

For investor inquiries:
CoreIR
Phone: (212) 655-0924
[email protected]

Source: AMMO, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.