These shares have consolidated building a solid base at $2.00 after testing resistance at $3.00 earlier this year .We feel that a breakout is at hand considering the dramatic growth in revenues and its uplisting to NASDAQ shortly .
We urge all serious investors to immediately place these shares on their BUY LIST and watch carefully for an upside BREAKOUT THRU THE $3.00 LEVEL.
Nowadays more shareholders seem to be interested in shares with an ecological, social and managerial character, better known as the ESG-shares. However, the world finds itself in a bizarre time in which the world lives in uncertainty and has an increasing demand for safety, assurance, but above all security. Because of the social unrest, Ammo, Inc. ($POWW) could be a particularly lucrative share for the near future. The company is an authorized representative and maufacturer of ammunition and related components.
Big Numbers Speak Volumes
Recently Ammo filed to raise an amount close to $15 million from the sale of its common share in an IPO, according to an amended registration statement. The company has now received at least $57 million from investors, providing it with opportunities to develop further and break away from its competition. Customers are acquired through direct selling methods and the company sells through distributors and directly to the larger retailers and law enforcement agencies.
The financial results for the fiscal second quarter that ended on September 30, 2020 are known. Various facts can be inferred from this, including the total turnover of the company. Despite the pandemic, Ammo had a great quarter. Total sales increased 307% to $12.0 million from $2.9 million in the same period a year earlier. Ammunition revenues were up 564% to $8.7 million and case sales were up 100% to $3.3 million. The net loss improved significantly by $1.1 million to $2.3 million, compared to a net loss of $3.4 million in the same period in 2019.
Time For The Next Step?
The idea is to sell 7.1 million common shares at an assumed price of $2.10 per share for gross proceeds of around $15.0 million. This excludes the sale of common underwriter options. With a successful IPO in the middle of the proposed price range, the enterprise value at IPO could reach $132.9 million. Excluding the effects of underwriter options and private placement of shares or restricted shares, the ratio between current and outstanding shares will be approximately 12.37%.
In addition, Ammo is seeking government investment to fund its ongoing product development and growth plans and to cover increased use of cash. It must be said that the company is experiencing significant operating losses and is experiencing a burn of free cash flow. To reflect continued sales growth from a low base and a turnaround to a positive gross margin, the financial data has recently been updated. It is therefore good for Ammo to observe that the market opportunities for both small-caliber ammunition and special market products show positive growth opportunities in the medium term.
Update On Its Fiscal Year
Finally, Ammo has even more in store for investors. The company updated its guidance for fiscal year 2021 to $55 million late last week, suggesting an expected year-over-year growth of 272%. This is mainly based on domestic commercial demand, such as military, law enforcement and export orders that are generating higher demand due to the pandemic.
For those who want to read the FORM S-1/A document of November 19, 2020, please click here.
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