AMMO (NASDAQ: POWW) Pledges Donation Of 1 Million Rounds Of Ammunition, Scaled Production To Address Crisis In Ukraine

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In just three weeks, Ukraine has been devastated by the Russian invasion, resulting in rising death tolls, widespread destruction of towns and cities and effectively putting Ukrainians under siege. 

As conditions worsen, Ukraine’s President Volodymyr Zelensky has asked the United States for military support to bolster the outgunned Armed Forces of Ukraine.

While the U.S. government is hesitant to send in troops, it has agreed to send support in the form of weapons, armor and other equipment. Now, weapons and ammunition manufacturers are stepping up to bolster that support with additional donations. AMMO Inc. POWW, for example, pledged a large donation of ammunition to Ukraine and reports it is working with the U.S. Department of Defense to develop innovative ammunition designs for the U.S. military.

AMMO Joined by Others in Million Ammunition Donation to Ukraine

Earlier this month, AMMO announced it would donate 1 million rounds of ammunition to the Ukrainian Armed Forces as they fend off the Russian military. The announcement came on the heels of  Zelensky’s now-famous response turning down the United States offer to help him evacuate. “I need ammunition, not a ride,” Zelensky told U.S. ambassadors, affirming his commitment to stand with his fellow Ukrainians during the crisis.  AMMO says it has fulfilled their promise of providing 1 million rounds, which arrived in Ukraine Tuesday March 22.  AMMO was shortly joined by other ammunitions industry players like Remington Arms Co. LLC and CCI Ammunition, a subsidiary of Vista Outdoor Inc. VSTO, to offer a combined donation of 2 million rounds of ammunition 

“We recognize that events are unfolding rapidly on the ground in Ukraine,” AMMO CEO Fred Wagenhals said in a statement about the donation. “We are prepared to move quickly as possible to support Ukraine as it continues to defend itself and its freedom.”

AMMO’s New Defense Contracts Look To Make New, Better Ammunition Available

Last year, the U.S. Department of Defense (DOD) awarded two contracts to AMMO. The first contract, in June, tasks the company with designing and manufacturing multiple Ballistically Matched Multi-Purpose Rounds (BM-MPR) for the U.S. military. The new design allows snipers to switch between standard-issue ammo and BM-MPR without needing to readjust the scopes on their weapons. 

The second contract is for the design and manufacture of signature-on-target rounds (SoT). The design is meant to give machine gunners the tracking capabilities of traditional tracer ammunition but without the visible signature that typically reveals the shooter’s location, possibly exposing them to enemy fire.

With the announcement this week of an additional $800 million in military support, including small arms and military equipment, these innovative new forms of ammunition could end up playing a role in leveling the battlefield between a well-armed Russian invader and the currently limited weapons available to Ukrainian fighters.

Going forward, AMMO states it is working to scale production to better address this current crisis. As part of that scale-up effort, the company is building a 165,000-square-foot state-of-the-art ammunition and brass case manufacturing plant in Manitowoc, Wisconsin, that’s slated for completion this summer. 

The manufacturing facility is expected to triple the company’s output. With that increased output, AMMO says it hopes to be able to provide additional support to Ukrainians if the crisis continues.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.