AMMO, INC. Reports Material Agreement & New Financial Obligation

TL;DR

**AMMO, INC. just reported a new material agreement and financial obligation, but gave no details.**

AI Summary

AMMO, INC. filed an 8-K on January 5, 2024, reporting events from December 29, 2023, concerning an 'Entry into a Material Definitive Agreement' and 'Creation of a Direct Financial Obligation'. While the filing indicates these significant events, it does not provide specific details about the nature of the agreement or the financial obligation, such as dollar amounts or involved parties. This lack of detail means investors are currently in the dark about the specifics of these potentially impactful financial changes, making it difficult to assess their effect on the company's future performance or stock value.

Why It Matters

This filing signals significant financial changes for AMMO, INC. but the lack of specific details leaves investors guessing about the potential impact on the company's balance sheet and future profitability.

Risk Assessment

Risk Level: medium — The filing indicates significant financial events without providing crucial details, creating uncertainty and potential risk for investors.

Analyst Insight

A smart investor would await further disclosures from AMMO, INC. regarding the specifics of the material agreement and financial obligation before making any investment decisions, as the current filing lacks critical details to assess impact.

Key Players & Entities

• AMMO, INC. (company) — the registrant filing the 8-K
• December 29, 2023 (date) — date of the earliest event reported
• January 5, 2024 (date) — date the 8-K was filed

FAQ

Key Financial Figures

• $0.001 — r value POWW NASDAQ Common Stock, $0.001 par value POWW The Nasdaq Stock Mar
• $20,000,000 — e principal amount of the lesser of (a) $20,000,000 (the "Total Commitment Amount") and (b)

Filing Documents

• form8-k.htm (8-K) — 49KB
• ex10-1.htm (EX-10.1) — 475KB
• 0001493152-24-001405.txt ( ) — 827KB
• poww-20231229.xsd (EX-101.SCH) — 4KB
• poww-20231229_def.xml (EX-101.DEF) — 26KB
• poww-20231229_lab.xml (EX-101.LAB) — 36KB
• poww-20231229_pre.xml (EX-101.PRE) — 25KB
• form8-k_htm.xml (XML) — 5KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 29, 2023 AMMO, INC. ( Exact name of registrant as specified in its charter ) Delaware 001-13101 83-1950534 (State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S Employer Identification No.) 7681 E. Gray Road , Scottsdale , Arizona 85260 ( Address of principal executive offices and Zip Code ) (480) - 947-0001 ( Registrant ' s telephone number, including area code ) (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Common Stock, $.001 par value POWW NASDAQ Common Stock, $0.001 par value POWW The Nasdaq Stock Market LLC (Nasdaq Capital Market) 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.001 par value POWWP The Nasdaq Stock Market LLC (Nasdaq Capital Market) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 1.01. Entry Into a Material Definitive Agreement. On December 29, 2023, AMMO, Inc. (the "Company") entered into a Loan and Security Agreement (the "Agreement") by and among the Company and other borrowers party to the Agreement (collectively, the "Borrower"), the lenders party thereto (collectively, the "Lenders") and Sunflower Bank, N.A., as administrative agent and collateral agent (the "Agent"). Capitalized terms used but not otherwise defined herein have the same definitions given to such terms in the Agreement Under the terms of the Agreement, the Lenders have provided to the Borrower a revolving loan in the principal amount of the lesser of (a) $20,000,000 (the "Total Commitment Amount") and (b)the Borrowing Base (a formula based on certain amounts owed to Borrower for goods sold or services provided and eligible inventory (the "Revolving Loan"). The proceeds of loans under the Agreement may be used for working capital, general corporate purposes, Permitted Acquisitions, to pay fees and expenses incurred in connection with the Revolving Line, to facilitate Borrower's stock repurchase program and to fund Borrower's general business requirements. The Revolving Loan bears interest at a rate of the greater of (x) 3.50% (the "Floor Rate") and (y) Term SOFR, plus 3.00% (the "Revolving Facility Applicable Rate") and is computed on the basis of a 360-day year for the actual number of days elapsed. Except in an Event of Default (as defined below), Advances under the Revolving Loan shall bear interest, on the outstanding Daily Balance thereof, at the Revolving Facility Applicable Rate. Interest is due and payable on the first calendar day of each month during the term of the Agreement. The Borrower is also obligated to pay to Agent, for the ratable benefit of Lenders, an origination fee, Prepayment Fee, unused facility fee, collateral monitoring fee and Lender Expenses. The Borrower may borrow, repay and reborrow under the Revolving Loan until December 29, 2026 (the "Maturity Date"), at which time the commitments will terminate and all outstanding loans, together with all accrued and unpaid interest, must be repaid. If the Revolving Loan is refinanced by another lender prior to the Maturity Date, an additional fee payable concurrently with such refinancing in an amount equal to (i) three percent (3.0%) of the Total Commitment Amount, if such financing occurs after the Closing Date but on or prior to the first anniversary of the Closing Date, (ii) two percent (2.0%) of the Total Commitment Amount, if such refinancing occurs after the first anniversary of the Closing Date but on or prior to the second anniversary of the Closing Date, and (iii) one percent (1.0%) of the Total Commitment Amount, if such refinancing occurs after the second anniversary of the Closin

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View this 8-K filing on SEC EDGAR