AMMO and Mill City Ventures III to Partner on GunBroker.com Customer Financing
May 06 2021 - 8:30AM
AMMO, Inc. (Nasdaq: POWW ) (“AMMO” or the “Company”), a premier
American ammunition and munition components manufacturer and owner
of GunBroker.com, the leading online marketplace dedicated to the
lawful sale of firearms, hunting, shooting and related products, is
pleased to announce that it has entered into a non-binding Letter
of Intent (“LOI”) with Mill City Ventures III, Ltd. (OTCBB: MCVT)
(“Mill City”), a non-bank lender and specialty finance company,
whereby the two companies will work together to provide
GunBroker.com customers with the option to purchase items through
the GunBroker.com website using short-term consumer financing
provided by Mill City.
AMMO’s Chief Executive Officer Fred Wagenhals,
addressed the LOI, noting that, “the development of our Mill City
relationship is the first of many steps our management team has in
store to unlock the exciting GunBroker.com platform. Our plan from
the outset with GunBroker.com was to leverage the incredible
“eBay®-type” platform by providing important consumer services and
expanded product offerings through multiple channels. Each of these
initiatives are designed to further open the GunBroker.com platform
to more users by presenting them with a variety of opportunities to
purchase such as split payment, monthly installments etc. Our
research indicated the Company could reasonably target a 30%
average order volume increase, with repeat user metrics potentially
increasing approximately 20% when our point of sale consumer
financing program is rolled out. We believe the program we are
developing with Mill City will be well-received by the
GunBroker.com patrons, while placing the Company in a position to
substantially enhance the platform’s already impressive sales
metrics at every level, with strong revenue increases expected to
follow, all of which enhances AMMO shareholder value.”
Mill City’s Chief Executive Officer, Douglas M.
Polinsky, stated that “we are proud to continue growing our
relationship with the world’s greatest manufacturer of premier
ammunition and are excited about the opportunity to work with AMMO
now that it has successfully closed on the GunBroker.com merger. As
a result, we look forward to helping AMMO grow its business while
at the same time offering attractive returns for the Mill City
shareholders. The financing program we are developing with AMMO is
being designed to provide consumer-friendly financing options for
interested users. Our clear charge is to measurably increase
consumer access and revenue opportunities for AMMO and Mill
City.”
Pursuant to the terms of the LOI, the parties
intend to finalize the terms and conditions of their working
relationship over the course of the second calendar quarter and
arrive at a definitive financing agreement. No assurances can be
given, however, that the parties will successfully negotiate and
enter into a definitive agreement.
About AMMO, Inc.
With its corporate offices headquartered in
Scottsdale, Arizona. AMMO designs and manufactures products for a
variety of aptitudes, including law enforcement, military, sport
shooting and self-defense. The Company was founded in 2016 with a
vision to change, innovate and invigorate the complacent munitions
industry. AMMO promotes branded munitions as well as its patented
STREAK™ Visual Ammunition, /stelTH/™ subsonic munitions, and armor
piercing rounds for military use. For more information, please
visit: www.ammo-inc.com.
About GunBroker.com
GunBroker.com is the largest online marketplace
dedicated to firearms, hunting, shooting and related products.
Aside from merchandise bearing its logo, GunBroker.com currently
sells none of the items listed on its website. Third-party sellers
list items on the site and Federal and state laws govern the sale
of firearms and other restricted items. Ownership policies and
regulations are followed using licensed firearms dealers as
transfer agents. Launched in 1999, GunBroker.com is an informative,
secure and safe way to buy and sell firearms, ammunition, air guns,
archery equipment, knives and swords, firearms accessories and
hunting/shooting gear online. GunBroker.com promotes responsible
ownership of guns and firearms. For more information, please visit:
www.gunbroker.com.
Forward Looking Statements
This document contains certain “forward-looking
statements”. All statements other than statements of historical
fact are “forward-looking statements” for purposes of federal and
state securities laws, including, but not limited to, any
projections of earnings, revenue or other financial items; any
statements of the plans, strategies, goals and objectives of
management for future operations; any statements concerning
proposed new products and services or developments thereof; any
statements regarding future economic conditions or performance; any
statements or belief; and any statements of assumptions underlying
any of the foregoing.
Forward looking statements may include the words
“may,” “could,” “estimate,” “intend,” “continue,” “believe,”
“expect” or “anticipate” or other similar words, or the negative
thereof. These forward-looking statements present our estimates and
assumptions only as of the date of this report. Accordingly,
readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the dates on
which they are made. We do not undertake to update forward-looking
statements to reflect the impact of circumstances or events that
arise after the dates they are made. You should, however, consult
further disclosures and risk factors we include in Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q, and Reports filed on
Form 8-K.
Investor Contact:Rob Wiley,
CFOAMMO, Inc.Phone: (480) 947-0001IR@ammo-inc.com
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