Mentioned:
A publicly traded weapons and ammunition company making a big bet on the future of online sales. But, why?
What’s happening:
- AMMO (NASDAQ: POWW) has officially entered into a deal to sell their ammunition manufacturing facility in Wisconsin to Olin Winchester for $75M USD in cash
Why it matters:
- The sale of AMMO’s manufacturing facility is part of a larger shift in strategy to go all in on online sales through their highly popular digital platform Gun Broker
Going deeper:
- AMMO has quickly become one of the most innovative ammunition companies in North America, which has been fuelled in part by the launch of highly unique lines of ammunition such as STREAK which allow shooters to see the trajectory of their bullets
- Olin Winchester is one of the largest small arms ammunition manufacturing companies in the world and also operates a manufacturing facility for supplying the United States military
- Online weapon and ammunition businesses have been experiencing a boom in excitement in the traditional public markets lately, which recently led Donald Trump Jr to get involved in a SPAC transaction to take online retailer GrabAGun public
The intrigue:
- AMMO has also publicly stated that they plan to officially rebrand following the successful completion of selling their manufacturing facility to Olin Winchester
