AMMO creates and produces goods for a range of purposes, including self-defense, sport shooting, law enforcement, and the military.
Ammo Inc. (NASDAQ:POWW)
After the owner of GunBroker.com reported that its chief financial officer and chief strategy officer had been placed on administrative leave, Ammo Inc. (NASDAQ:POWW) saw a 1.7% decline.
According to a statement, Ammo said it has cause to believe that chief strategy officer Steven Urvan and CFO Susan Lokey may have “misappropriated the company’s data and digital assets and sent that data to a third party controlled by Mr. Urvan and with which Ms. Lokey is involved.”
A few weeks ago, the business launched an internal investigation into the alleged misbehavior. Throughout the investigation, the executives will continue to be off the job. A special committee was established by the Ammo board of directors in response to Urvan’s actions.
Ammo stated that it does not anticipate any findings from the investigation to have an impact on its financial performance, balance sheet, or business prospects.
The announcement comes after activist investor Urvan Group named seven candidates for the AMMO board of directors late last month. The proposed board would assess the long-term benefits and drawbacks of dividing AMMO’s complementary companies. According to Urvan Group, the company is not up for acquisition in whole or in part. 17.1% of POWW is presently owned by Urvan Group.
AMMO revealed plans to split the marketplace and ammunition operations into two distinct entities last month. AMMO (NASDAQ:POWW), the company that owns GunBroker.com, has received full board approval for a plan to divide its ammunition and marketplace businesses into two distinct publicly traded companies. GunBroker.com and its other internet businesses will be a part of Outdoor Online, which will be led by Fred Wagenhals, the current Chairman & CEO of AMMO.
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