Ammo Inc. reaches $8 million settlement with Triton Value Partners By Investing.com

SCOTTSDALE, AZ – Ammo, Inc., a manufacturer of ammunition and related accessories, has reached a settlement agreement with Triton Value Partners, LLC and several individuals, resolving litigation pending in Cobb County Superior Court.

On Monday, the Company entered into a confidential settlement agreement and mutual release with Triton Value Partners, Donald Gasgarth, Paul Freischlag Jr. and Jeff Zwitter (collectively, the plaintiffs), and defendants Urvan and Gunbroker, to resolve all disputes relating to the case Triton Value Partners, LLC et al. v. TVP Investments, LLC et al.

Under the terms of the settlement, the Gunbroker defendants will pay the plaintiffs $8 million in a lump sum. Ammo, Inc. will facilitate this payment by transferring the amount to an escrow agent within 45 days of the settlement agreement being executed.

Once the Trustee receives payment, the Plaintiffs will dismiss the Complaint and the Urvan Defendants will dismiss all counterclaims against the Plaintiffs.

This settlement follows a prior merger agreement dated April 30, 2021, involving Ammo, Inc., Speedlight Group I, LLC, Gemini Direct Investments, LLC and Steven Urvan. Under this agreement, Urvan, who has sole rights to settle the dispute on behalf of all defendants, is also responsible for indemnifying Ammo, Inc. for certain liabilities, including those related to the lawsuit.

In addition, a pledge and escrow agreement was entered into alongside the merger agreement under which stock certificates valued at $2.8 million in Ammo, Inc. common stock were held in escrow pending the settlement of the litigation. Under the new agreement, a portion of these pledged securities, in the form of 2,857,143 shares, will be cancelled when the settlement payment is made to the plaintiffs.

Steven Urvan has the option of paying the settlement amount directly instead of submitting the stock certificate for cancellation. If he chooses this route, Ammo, Inc. will return the stock certificate to him under certain conditions.

The Settlement Agreement includes mutual waiver of all claims by plaintiffs and defendants as of the Effective Date, except that Ammo, Inc. and the Firearms Dealing Defendants do not waive any claims against Urvan, and Urvan does not waive any claims against Ammo, Inc., the Firearms Dealing Defendants, or any of their affiliates.

This news is based on a press release and provides a clear resolution to the legal disputes between Ammo, Inc. and the other parties involved.

In other recent news, AMMO, Inc. faced a cut to its stock target from Roth/MKM due to margin issues in its ammunition segment. Although the company reported higher-than-expected revenue for the fourth fiscal quarter, the company’s adjusted EBITDA and EPS fell short of consensus expectations. To address these challenges, a manufacturing consulting firm was retained with the goal of improving processes by the end of 2024.

In its fourth quarter and fiscal 2024 earnings call, AMMO, Inc. reported sequential revenue growth and announced strategies to increase its ammunition production capacity. Despite a quarterly loss per share of $0.01, the company remains confident in its financial position. It generated $32.6 million in cash from operations and reported $131.5 million in working capital.

Looking ahead, the company plans to launch Collector’s Elite, a premium auction platform, as well as financing partnerships in fiscal 2025. Analysts point out that AMMO, Inc. is focused on maximizing production efficiency, especially in the rifle case market. These are some of the recent developments at AMMO, Inc.

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