Trump Jr. Partners With GrabAGun: What Investors Should Know About E-Commerce Company Set To Trade As 'PEW'

Mobile-focused online firearms retailer GrabAGun announced Monday a SPAC merger to go public and named Donald Trump Jr. as an investor and advisor.

The SPAC Merger: GrabAGun announced a SPAC merger valuing the company at $150 million with Colombier Acquisition Corp II CLBR. The deal will add to the list of gun stocks and related businesses that are public.

Colombier Acquisition Corp is led by Omeed Malik, who is described as a "distinguished entrepreneur and investor with extensive experience in digital marketplace transactions" in the deal announcement.

After the merger, the company will trade as GrabAGun Digital Holdings Inc with the ticker "PEW" on the NYSE. The merger is expected to close in summer of 2025.

Current Colombier Acquisition shareholders are expected to own 68% of the new company depending on shareholder redemptions at the time of the merger.

The company said the funds from the SPAC merger will help with future growth initiatives, seeking consolidation opportunities and general corporate purposes.

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About GrabAGun: Competing in the $25 billion firearms and ammunition segment, GrabAGun uses a mobile and online platform to cater to a younger audience and create ease-of-use for consumers to secure guns.

The company was founded in 2010 and said it operates under regulatory and legal requirements of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

GrabAGun partners with multiple leading gun manufacturers and allows users to pick hich gun they want to buy through the e-commerce platform and then pick it up at a secure location to complete the purchase.

The company offers guns from Smith & Wesson Brands SWBI and Sturm, Ruger & Company RGR. When public, the company will among gun-related stocks such as Olin Corporation OLN, Axon Enterprise AXON, AMMO Inc POWW, American Outdoor Brands AOUT and Academy Sports and Outdoors ASO.

The company also offers consumer financing, which it calls "shoot now/pay later" in the merger announcement.

Trump Jr. Added To Company: On Monday, it was announced that Trump is a "newly appointed advisor" to the company. He will also be an investor in the company after the merger is closed.

"It's truly important to me to only support and invest in companies that actually share my pro-American values, which is exactly why I'm so excited to announced our partnership with GrabAGun," Trump said.

Trump highlighted the company's focus on the Second Amendment and made a comparison to companies like Public Square PSQ, Rumble Inc RUM and Trump Media & Technology Group DJT and their support of the First Amendment.

"In an age where our right to bear arms is under constant attack from anti-gun politicians and woke corporations, GrabAGun has developed a powerful, scalable platform that offers unmatched selection and services to Americans who wish to legally buy and own a firearm."

Trump said GrabAGun will "revolutionize the industry" and drive "significant growth" ahead.

The GrabAGun and Colombier Acquisition Corp II merger is the latest to use the Trump name as a selling point to investors. Trump was recently added to the board of PSQ Holdings, a company that went public via SPAC merger with Colombier Acquisition Corp I.

Trump was also added as an advisor to Unusual Machines UMAC, a drone company.

Both PSQH and UMAC shares soared by more than 100% on news of the association with Trump.

Financials and Growth: GrabAGun had revenue of $98 million in 2023, up 14% year-over-year. The company reported that trailing 12-month revenue is $99.5 million, up 9.2% year-over-year.

The company has trailing 12-month EBITDA of $5.3 million. The company says it has positive cash flow.

GrabAGun CEO Marc Nemati said the SPAC merger will help the company scale operations and expand its reach with several growth opportunities ahead.

"In an industry that has historically been slow to adopt modern technology, we have developed a scalable solution that delivers a best-in-class buying experience to customers nationwide," Nemati said.

The company said gun purchases by millennials and Gen Z consumers are a key growth area. Gun ownership for people ages 18 to 35 was up 57% from 2014 to 2023 compared to growth of 2% for the 35-50 demographic and a drop of 11% for the 50-64 group, according to GrabAGun.

With a mobile and online experience that it said is more attractive to younger consumers, the company said it believes it can take market share from other gun retailers.

CLBR Price Action: Colombier Acquisition shares are down 7.55% to $10.90 Monday morning. Shares traded higher premarket on news of the deal.

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