AMMO, Inc. (NASDAQ:POWW) (“AMMO” or the “Company”), a premier American ammunition and munition components manufacturer and owner of GunBroker.com, the leading online marketplace dedicated to the lawful sale of firearms, hunting, shooting and related products, is pleased to announce that it has entered into a non-binding Letter of Intent (“LOI”) with Mill City Ventures III, Ltd. (OTC:MCVT) (“Mill City”), a non-bank lender and specialty finance company, whereby the two companies will work together to provide GunBroker.com customers with the option to purchase items through the GunBroker.com website using short-term consumer financing provided by Mill City.
AMMO’s Chief Executive Officer Fred Wagenhals, addressed the LOI, noting that, “the development of our Mill City relationship is the first of many steps our management team has in store to unlock the exciting GunBroker.com platform. Our plan from the outset with GunBroker.com was to leverage the incredible “eBay®-type” platform by providing important consumer services and expanded product offerings through multiple channels. Each of these initiatives are designed to further open the GunBroker.com platform to more users by presenting them with a variety of opportunities to purchase such as split payment, monthly installments etc. Our research indicated the Company could reasonably target a 30% average order volume increase, with repeat user metrics potentially increasing approximately 20% when our point of sale consumer financing program is rolled out. We believe the program we are developing with Mill City will be well-received by the GunBroker.com patrons, while placing the Company in a position to substantially enhance the platform’s already impressive sales metrics at every level, with strong revenue increases expected to follow, all of which enhances AMMO shareholder value.”
Mill City’s Chief Executive Officer, Douglas M. Polinsky, stated that “we are proud to continue growing our relationship with the world’s greatest manufacturer of premier ammunition and are excited about the opportunity to work with AMMO now that it has successfully closed on the GunBroker.com merger. As a result, we look forward to helping AMMO grow its business while at the same time offering attractive returns for the Mill City shareholders. The financing program we are developing with AMMO is being designed to provide consumer-friendly financing options for interested users. Our clear charge is to measurably increase consumer access and revenue opportunities for AMMO and Mill City.”
Pursuant to the terms of the LOI, the parties intend to finalize the terms and conditions of their working relationship over the course of the second calendar quarter and arrive at a definitive financing agreement. No assurances can be given, however, that the parties will successfully negotiate and enter into a definitive agreement.