Ammo tumbles after announcing business split plan

Outdoor Holding

15/08/2022 15:46

** Ammo Inc  POWW.O  shares fall 11.4% to $5.30 on Mon as it
plans to split its ammunition and marketplace businesses into
two independent publicly-traded entities
    ** Shares on track for biggest one-day pct decline since Mar
12, 2021
    ** Outdoor Online, Inc to comprise GunBroker.com and related
online businesses with current Ammo Chairman/CEO, Fred
Wagenhals, to assume same roles; Outdoor Online to trade under a
new ticker symbol  urn:newsml:reuters.com:*:nGNX3wJDV5
    ** Second entity, Action Outdoor Sports, Inc (AOS), to
retain ammunition and munition components business; CEO and
executive management team and board to be announced at later
date
    ** Co anticipates transaction to be tax-free spinoff and
close in 2023 via a 100% stock dividend distribution of AOS to
shareholders
    ** Ammo slated to report its fiscal Q1 results after the
bell on Mon
    ** Analysts on avg calling for rev up 56% yr/yr to $69 mln
and adj EPS of 7 cents vs 13 cents profit in yr-ago period, per
Refinitiv IBES data
    ** With move on the session, POWW shares down ~2% YTD and
off ~25% in past 12 months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))