AMMO Inc POWW shares are tumbling Monday morning after the company announced plans to separate its ammunition and marketplace businesses into two independent publicly-traded companies.
AMMO said Outdoor Online Inc will be made up of GunBroker.com and its related online businesses. Current AMMO chairman and CEO, Fred Wagenhals, will assume the chairman and CEO role at Outdoor Online.
The second entity, Action Outdoor Sports Inc, will retain the company's current ammunition and munition components business. AMMO said the CEO, executive management team and board of Action Outdoor Sports will be announced at a later date.
AMMO anticipates the transaction will be in the form of a dividend distribution to its shareholders of 100% of the stock of Action Outdoor Sports. Following the spin-off, AMMO will change its name to Outdoor Online and will operate under a new ticker symbol.
AMMO expects the transaction to be completed in the 2023 calendar year. The company is set to report its fiscal first-quarter financial results after the bell.
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POWW Price Action: AMMO has a 52-week high of $6.05 and a 52-week low of $3.52.
The stock was down 11.6% at $5.29 at press time, according to Benzinga Pro.
Photo: tung256 from Pixabay.
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