AMMO, Inc. Executes Letter of Intent to Acquire GunBroker.com

SCOTTSDALE, Ariz., Feb. 11, 2021 (GLOBE NEWSWIRE) -- AMMO, Inc. (Nasdaq: POWW ) (“AMMO” or the “Company”), a premier American ammunition and munition components manufacturer and technology leader, is pleased to announce it has entered into a non-binding letter of intent (“LOI”) dated February 9, 2021 with IA Tech LLC for its GunBroker.com business (GunBroker.com), the world’s largest on-line auction marketplace dedicated to firearms, hunting, shooting and related products. The Transaction will involve a merger or business combination resulting in GunBroker.com becoming a wholly-owned subsidiary of AMMO (the “Transaction”).

GunBroker.com Transaction

-GunBroker.com is the world’s leading online marketplace for the legal sale of firearms, ammunition and accessories with over 6.0 million registered users

-GunBroker.com’s estimated 2020 revenue of approximately $60 million, over $40 million of EBITDA, positive net income and strong free cash flow

-Purchase price of approximately $240 million, representing a purchase price to EBITDA multiple of less than 6.0x

Transaction further expands upon AMMO’s vertical integration strategy
Current AMMO shareholders will own the majority of the combined company
“This Transaction is accretive to our shareholders and will be another vertical integration milestone for the Company which diversifies our revenue base with high profit-margin business offered through a premier brand deploying best-in-class secure transactional technology,” said Fred Wagenhals, AMMO’s Chairman and CEO.