SCOTTSDALE, Ariz., Nov. 07, 2022 (GLOBE NEWSWIRE) — AMMO, Inc. (NASDAQ: POWW, POWWP) (“AMMO” or the “Company”) the owner of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, and a leading vertically integrated producer of high-performance ammunition and components, today announced that it has reached a settlement agreement (the “Agreement”) with Steven Urvan and Susan Lokey (collectively, the “Urvan Group”).
Pursuant to the Agreement, the Company will appoint Christos Tsentas and Wayne Walker to the AMMO Board of Directors (the “Board”). Mr. Tsentas is a former investment banker with M&A and investment management experience, who also possesses firearms accessories manufacturing board experience. Mr. Walker is a corporate governance expert with significant public company experience and more than 35 years of experience in corporate turnarounds. Messrs. Tsentas and Walker will stand for election at the Company’s 2022 Annual Meeting of Shareholders (the “Annual Meeting”), which is scheduled for December 15, 2022. With the appointments, AMMO’s Board will increase in size to nine directors.
“We are pleased to have reached a constructive outcome with The Urvan Group,” said Fred Wagenhals, AMMO’s Chairman & CEO. “We welcome these new directors and believe they can and will contribute to our robust Board deliberations as we chart a path for the creation of shareholder value.”
“As a large shareholder, Board member and founder of GunBroker.com, I look forward to AMMO’s future, and believe the addition of Messrs. Tsentas and Walker as directors will help strengthen the Board and propel the Company forward,” said Mr. Urvan. “I see a bright future for AMMO and look forward to working with my fellow Board members to identify opportunities to drive profitable growth.”
Pursuant to the Agreement, the Urvan Group has withdrawn its slate of seven nominees and agreed to vote all of its shares in favor of the Board’s slate at the Annual Meeting. The Board will immediately form a new committee tasked with planning for CEO succession with the assistance of a nationally recognized search firm. Further, given market conditions and shareholder feedback, the Company will suspend the separation of its ammunition and marketplace businesses into two independent publicly traded companies.
The Company has also ended its previously announced internal investigation into Mr. Urvan and Ms. Lokey. Mr. Urvan will remain on the Board.
Moreover, the Agreement includes customary standstill and related provisions. The full agreement between AMMO and the Urvan Group will be filed by the Company on a Form 8-K with the U.S. Securities and Exchange Commission.
The Company will file its definitive proxy statement and other relevant documents in due course.
Shareholders do not need to take any action at this time.
Sidley Austin LLP served as legal advisor to the Company. Olshan Frome Wolosky LLP represented the Urvan Group.