Item 1.01 Entry into a
Material Definitive Agreement
On September 10, 2020, Axon Enterprise, Inc. (the “Company”),
purchased a parcel of land located in Scottsdale, Arizona from the
Arizona State Land Department at auction, on which the Company
intends to construct its new manufacturing and office facility. The
purchase price of the land is $49.1 million, plus selling fees,
administrative fees, and certain other costs and expenses incurred
by the Arizona State Land Department pursuant to the auction, for a
total of approximately $50.6 million. Approximately $4.2 million of
the purchase price was paid on September 10, 2020, with the balance
due within 30 days.
The Company has selected Scottsdale as the location for its
next-generation manufacturing facilities and offices. The Company
aims to consolidate five locations and bring more automation to
future generations of product hardware. The Company requires
physical facilities for not only manufacturing, but also hardware
R&D, testing laboratories, wireless calibration, quality
testing, and a variety of other functions that require physical
collaboration. This land investment provides long-term flexibility,
optionality and stability for the Company’s physical plant
operations, and supports Axon’s growth and expansion plans for the
next several decades.
The acquired land is walking distance from Axon’s current
headquarters and manufacturing operations, giving the Company
flexibility to migrate key manufacturing infrastructure over time,
with the benefits of minimal business disruption and operational
redundancy.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
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Dated: September 11, 2020
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Axon Enterprise, Inc.
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By:
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/s/ JAWAD A. AHSAN
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Jawad A. Ahsan
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Chief Financial Officer
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