Ammo’s top investor seeks board control, nominates 7 new directors

By Svea Herbst-Bayliss

BOSTON (Reuters) – Ammo Inc’s largest investor needs to take management of the ammunition producer’s board and enhance the agency’s revenue by development in e-commerce of firearms, outside sporting and associated items, in accordance with a letter seen by Reuters.

Steve Urvan, who owns 17% of the Scottsdale, Arizona-based firm and sits on the board, nominated seven director candidates, together with himself, his letter to different shareholders mentioned. The candidates have expertise in firearms manufacturing, e-commerce and mergers and acquisitions.

Urvan offered GunBroker.com, an organization he based and ran for over 20 years, to Ammo in 2021 and believes the corporate might attain $1 billion in annual gross sales over the approaching years by rising the net platform and getting into new classes.

Ammo this month introduced plans to separate its manufacturing and on-line market, simply 16 months after finishing the acquisition of GunBroker.com. The corporate didn’t instantly reply to a request for remark.

The corporate, Urvan argues, ought to undertake a brand new technique to rework itself from a traditional ammunitions manufacturing enterprise to a diversified e-commerce platform. He acknowledged that he’s taking “a comparatively extraordinary step for a sitting director” together with his plan to take management of the board.

Shareholders will be capable to vote on administrators on the firm’s annual assembly due later this yr.

He thinks new administrators might assess Ammo’s management crew, reduce prices in its ammunitions phase, focus extra on larger development alternatives in e-commerce and contemplate potential acquisitions in associated areas together with sporting items, attire and collectibles. Finally he would additionally wish to separate the CEO and chairman roles, a pattern in company governance.

Earlier than Ammo purchased GunBroker.com, the corporate posted 5 years of internet losses as bills rose, Urvan wrote. Ammo’s share worth has lagged friends, tumbling 47% within the final 52 weeks. Rival Clarus Corp’s shares fell 18% and Vista Outdoor’ inventory dropped 29% throughout the identical time.

(Reporting by Svea Herbst-Bayliss; Enhancing by Sam Holmes)