American Rifleman | AMMO Inc. Offers to Buy GunBroker
by Guy J. Sagi –
Thursday February 18, 2021
AMMO Inc., parent company of Streak Visual, Night OPS and stelTH Subsonic Munitions Ammo, signed a non-binding letter of intent on February 9 to purchase GunBroker.com from IA Tech for $ 240 million, but does not guarantee the parties will negotiate successfully and enter into a definitive transfer of ownership agreement. Even then, the terms may not be the same and regulatory and board approval and other customary terms will still be required.
GunBroker was launched in 1999 and has grown to become the world’s leading online marketplace for the legal sale of firearms and related equipment. It currently has more than 6 million registered users. Nearly 7 million people visit the website each month to browse an average inventory of 1 million firearms and related items.
“We founded AMMO as a technology-based company capable of providing the most advanced ammunition offerings to the shooting community, whether for the military, law enforcement, hunting or recreational shooting communities,” said Fred Wagenhals, Chairman and CEO of AMMO. “GunBroker.com is a perfect fit and supports AMMO’s mission on many levels. Steve Urvan had the vision and entrepreneurial drive to start GunBroker.com with the same spirit and vision more than 20 years ago. With his drive and intimate understanding of how to serve our collective market, Steve has created the world’s largest online marketplace for buying and selling firearms, ammunition and accessories. “
AMMO’s expansion over the past year has been dramatic. On November 6, the company made the final payment for the purchase of the brass housing division of Jagemann Stamping Company in Wisconsin for $ 27 million. In December, it joined Nasdaq under the ticker POWW, offering a total of 8,564,285 shares of common stock at a price of $ 2.10 per share.
In a press release earlier this month, the company reported “… orders shipped are up 256 percent year over year as it continues to fulfill booked orders that rose to a record $ 180 million as of February 1. 2021. ”Headquartered in Scottsdale, AZ, with manufacturing facilities in Payson, AZ and Manitowoc, WI. The company was founded in 2016.