AMMO, Inc. Enters Into Asset Purchase Agreement with Olin Winchester

AMMO, Inc. (NASDAQ: POWW) has announced that it has entered into a definitive agreement to sell its ammunition manufacturing assets to Olin Winchester, LLC, a subsidiary of Olin Corporation, for a total cash consideration of $75 million. The agreement was reached following a strategic review process, which culminated in the decision to focus on growing the GunBroker.com marketplace, the largest online platform for firearms, hunting, and related products.

The transaction, which was unanimously approved by AMMO’s Board of Directors, is expected to streamline the business, reinforce the company’s cash position, and support its expansion efforts while prioritizing the online marketplace’s growth.

Under the terms of the agreement, AMMO will sell its 185,000 square foot production facility and ballistic range located in Manitowoc, Wisconsin to Olin-Winchester. The deal is anticipated to enhance Olin-Winchester’s existing production capabilities and benefit from its integration across the commercial ammunition value chain.

The closing of the transaction is subject to customary conditions and is projected to be finalized in the second quarter of 2025. Following the completion of the transaction, AMMO plans to undergo a rebranding process and corporate name change.

AMMO was advised by Baird and represented by Bryan Cave Leighton Paisner, LLP. Furthermore, Lake Street Capital Markets provided a fairness opinion to the Board.

In a related development, an independent investigation is underway focusing on certain disclosure and accounting matters during fiscal years 2020 through 2023. AMMO plans to update investors on this matter in the first quarter of 2025.

Please note that the content of this article contains forward-looking statements that are subject to uncertainties and risks. Investors are encouraged to review the risks and uncertainties outlined in the Company’s filings with the Securities and Exchange Commission.

For further information or inquiries, please refer to the Company’s press release dated January 21, 2025, and the subsequent attachments.

This news article is based on the information disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission on January 21, 2025.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AMMO’s 8K filing here.

About AMMO

AMMO, Inc designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms.