SCOTTSDALE, AZ – Ammo, Inc., a manufacturer of ammunition and related accessories, has reached a settlement agreement with Triton Value Partners, LLC and several individuals, resolving a litigation case that had been ongoing in the Cobb County Superior Court.
On Monday, the company entered into a Confidential Settlement Agreement and Mutual General Release with Triton Value Partners, Donald Gasgarth, Paul Freischlag Jr., Jeff Zwitter, collectively referred to as the Plaintiffs, and the Urvan Defendants and Gunbroker Defendants, to settle all disputes related to the case captioned Triton Value Partners, LLC et al. v. TVP Investments, LLC et al.
Under the terms of the settlement, the Gunbroker Defendants will pay the Plaintiffs $8 million in a lump sum. Ammo, Inc. will facilitate this payment by tendering the amount to an escrow agent within 45 days of the settlement agreement's execution.
Once the escrow agent receives the payment, the Plaintiffs will dismiss the lawsuit with prejudice, and the Urvan Defendants will dismiss all counterclaims against the Plaintiffs.
This settlement follows a previous Merger Agreement dated April 30, 2021, involving Ammo, Inc., Speedlight Group I, LLC, Gemini Direct Investments, LLC, and Steven Urvan. As part of that agreement, Urvan, who has exclusive rights to settle the litigation on behalf of all Defendants, is also responsible for indemnifying Ammo, Inc. for certain liabilities, including those associated with the lawsuit.
Moreover, a Pledge and Escrow Agreement was made alongside the Merger Agreement, where stock certificates representing $2.8 million worth of Ammo, Inc. common stock were held in escrow pending the lawsuit's resolution. According to the new settlement, a portion of these pledged securities, in the form of 2,857,143 shares, will be canceled when the settlement payment is made to the Plaintiffs.
Steven Urvan has the option to pay the settlement amount directly instead of surrendering the stock certificate for cancellation. If he chooses this route, Ammo, Inc. will release the stock certificate back to him, subject to certain conditions.
The settlement agreement includes mutual releases of all claims by the Plaintiffs and Defendants as of the effective date, with the exception that Ammo, Inc. and the Gunbroker Defendants do not release any claims against Urvan, nor does Urvan release any claims against Ammo, Inc., the Gunbroker Defendants, or related entities.
This news is based on a press release statement and provides a clear resolution to the legal disputes between Ammo, Inc. and the other parties involved.
In other recent news, AMMO, Inc. faced a cut in its share target by Roth/MKM due to margin challenges in its ammunition segment. Despite reporting higher-than-expected sales for the fourth fiscal quarter, the company's adjusted EBITDA and EPS fell short of consensus expectations. To address these challenges, a manufacturing consulting firm has been engaged, with the aim of improving processes through the end of 2024.
In its Fourth Quarter and Fiscal Year 2024 Earnings Call, AMMO, Inc. reported sequential sales growth and announced strategies to enhance its ammunition manufacturing capacity. Despite a quarterly loss per share of $0.01, the company remains confident in its financial position. It generated $32.6 million in cash from operations and reported $131.5 million in current assets.
Looking forward, the company plans to introduce Collector's Elite, a premium auction platform, and financing partnerships in fiscal 2025. Analysts note that AMMO, Inc. is focused on maximizing output efficiency, particularly in the rifle casing market. These are among the recent developments at AMMO, Inc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.