Ammo, Inc., the owner of GunBroker.com, reached a settlement agreement with Steven Urvan and Susan Lokey of The Urvan Group.
In August, the Urvan Group, owner of approximately 17.1 percent of outstanding common shares of Ammo, had nominated seven board members after it said it planned to separate its manufacturing and online marketplace this month.
According to the Agreement, the company will appoint Christos Tsentas and Wayne Walker to Ammo’s Board of Directors. Tsentas is a former investment banker with M&A and investment management experience and has firearms accessories manufacturing board experience. Walker has corporate governance and public company experience and more than 35 years of working in corporate turnarounds. Tsentas and Walker will stand for election at the company’s 2022 Annual Meeting of Shareholders, scheduled for December 15, 2022. With the appointments, Ammo’s Board will increase from nine to eleven directors.
“We are pleased to have reached a constructive outcome with The Urvan Group,” said Fred Wagenhals, Ammo’s chairman and CEO. “We welcome these new directors and believe they can, and will, contribute to our robust Board deliberations as we chart a path for the creation of shareholder value.”
“As a large shareholder, Board member and founder of GunBroker.com, I look forward to Ammo’s future and believe the addition of Messrs. Tsentas and Walker as directors will help strengthen the Board and propel the company forward,” said Urvan.
According to the Agreement, the Urvan Group has withdrawn seven nominees and agreed to vote all of its shares in favor of the Board’s selection at its annual meeting. The Board will immediately form a new committee tasked with planning for CEO succession. Due to market conditions and shareholder feedback, the company will suspend the separation of its ammunition and marketplace businesses into independent publicly traded companies.
