AMMO inc. POWW Shares tumble Monday morning after the company announced plans to separate its ammunition and market businesses into two independent, publicly traded companies.
AMMO said Outdoors Online Inc will consist of GunBroker.com and its related online business. Current Chairman and CEO of AMMO, Fred Wagenhalswill assume the role of President and CEO of Outdoor Online.
The second entity, Action Sports Plein Air Inc, will retain the company’s current ammunition and ammunition components business. AMMO said the CEO, management team and board of directors of Action Outdoor Sports will be announced at a later date.
AMMO anticipates that the transaction will take the form of a dividend distribution to its shareholders of 100% of the shares of Action Outdoor Sports. After the spin-off, AMMO will change its name to Outdoor Online and operate under a new ticker symbol.
AMMO expects the transaction to close in calendar year 2023. The company is expected to release its fiscal first quarter financial results after the bell.
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POWW Price Action: AMMO has a 52-week high of $6.05 and a 52-week low of $3.52.
The stock was down 11.6% at $5.29 at press time, according to Benzinga Pro.
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