Problems at Ammo Inc (POWW)

Problems at Ammo Inc (POWW)

Ammo Inc (NASDAQ: POWW — $446 million) is an ammunition manufacturer and owner of GunBroker, the largest online marketplace to buy and sell guns. Among the company’s many quirks: a former NASCAR star and NRA executive currently sit on the board, an alleged pump-and-dump artist is listed as a key employee, a former board member raised concerns about whistleblower retaliation, and a current board member is running a proxy fight against his fellow board members. Let’s dig in.

Founded in 2016 by Fred Wagenhals and his business partner Chris Larson, Ammo Inc has grown rapidly through acquisitions in the ammunitions space. Ammo Inc originally went public in a March 2017 reverse merger with OTC-listed Retrospettiva, a women’s apparel company, and then uplisted to the NASDAQ in December 2020 with a concurrent $18 million stock offering.

Mr. Wagenhals, 80 years old, serves as Chairman and CEO. He previously founded Action Performance Companies, a manufacturer of racecar toy collectibles that he …