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With the acquisition of GunBroker.com last spring, ammunition manufacturer AMMO Inc. (NASDAQ: POWW) reaches customers of the world’s largest online marketplace dedicated to firearms, hunting and shooting-related products.

AMMO acquired GunBroker.com for $50 million in cash, $50 million in debt assumption and repayment and the issuance of 20 million shares of common stock.

GunBroker.com‘s proprietary platform is reportedly scalable and easily maintained. The company minimizes fraudulent activity through enhanced security measures such as cell phone verification and additional customer diligence as needed.

AMMO hopes that the platform will help it compete with ammunition manufacturing giants like General Dynamics Corp. (NYSE: GD), BAE Systems plc (OTCMKTS: BAESY), Vista Outdoor Inc. (NYSE: VSTO) and Northrop Grumman Corp. (NYSE: NOC).

Scottsdale, Arizona-based AMMO designs and manufactures firearms products for law enforcement, the military, sport shooting and self-defense. Its brands include Streak Visual Ammunition, BIOAMMO Biodegradable Ammunition and /stelTH/ Subsonic Ammunition.

With the continuing fundamental strength of the ammunition industry, the company is projecting its revenue will reach $250 million for the 2022 fiscal year ending March 31. 

“We are seeing no evidence of an abatement of demand for our ammunition, and our GunBroker.com marketplace continues to enjoy year-over-year revenue growth with high profit margins,” AMMO CEO Fred Wagenhals said. “We remain focused on fulfilling all existing orders, which have more than spoken for our capacity through the end of our fiscal year and beyond.”

The company is opening a $24 million ammunition manufacturing plant in Manitowoc, Wisconsin this summer to ensure its capacity continues to meet increased projected demand. The 165,000-square-foot plant is expected to double its current output of 500 million rounds per year it produces at its existing 50,000-square-foot facility.

Last year, AMMO won two contracts from the U.S. Department of Defense for the development and manufacture of signature-on-target rounds and ballistically matched multipurpose rounds.

The economic impact of the firearm and ammunition industry in the United States increased from $19.1 billion in 2008 to $63.5 billion in 2019 — a 232% increase, according to a report by the National Shooting Sports Foundation, an industry trade association that counts about 9,000 manufacturers, distributors, firearm retailers, shooting ranges, sportsmen’s organizations and publishers among its members.

The industry also is a large employer. The total number of full-time equivalent jobs rose from about 166,000 to more than 342,330 in the same period — a 106% increase, according to the report.

Not only does the industry create jobs, it also generates considerable tax revenue. In the United States, the industry and its employees pay more than $6.98 billion in taxes, including property, income and sales-based levies.

“The broader economic impact flows throughout the economy, generating business for firms seemingly unrelated to firearms,” according to the National Shooting Sports report. “Real people, with real jobs, working in industries as varied as banking, retail, accounting, metalworking, even in printing, all depend on the firearm and ammunition industry for their livelihood.”

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

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