SCOTTSDALE, Ariz., March 31, 2020 (GLOBE NEWSWIRE) -- AMMO, Inc. (OTCQB: POWW) (“AMMO” or the “Company”), a premier American ammunition and munition components manufacturer and technology leader, is expanding its manufacturing and production capabilities at its facilities in Arizona and Wisconsin to meet the increased demand as a result of COIVD-19 and the upcoming election.
With the significant rise in recent pistol and small rifle ammunition purchase orders, AMMO’s production facilities are currently operating at near maximum capacity. As a result, the Company is in the process of expanding its current production and manufacturing capacity through additional tooling and equipment at each of its facilities in Payson, AZ and Manitowoc, WI.
AMMO’s facility in Payson, which primarily serves retail partners, is currently operating at surge capacity of 115% with employees working two shifts, seven days a week. For context, this facility was operating at 50% capacity for the quarter ended September 30, 2019. AMMO will be investing $200,000 to install two machines, which will be fully operational within the next 30 days, to increase the output of pistol ammunition by 20%.
The Manitowoc facility, which provides brass casing to customers across all channels, is currently operating at 75% capacity compared to 25% for the quarter ended September 30, 2019. In April, AMMO expects production capacity to increase to 100% as the Company begins fulfilling recent purchase orders. AMMO will be investing $750,000 into the Manitowoc facility to install new tooling and equipment within the existing manufacturing line. As a result, pistol and small rifle production capacity will increase by 25%, allowing the facility to produce up to 125 million rounds annually.
“With the significant and sudden rise in commercial demand, we felt it was necessary to expand our manufacturing and production capacity by bringing on additional tooling and equipment at each of our facilities,” said Fred Wagenhals, AMMO’s CEO. “We believe this expansion puts us in the best position to continue meeting the surge in orders within the commercial market and ensures our ability to fulfill customers’ orders in a timely manner.”
Although AMMO anticipates the increase in commercial market demand to continue through the November 2020 election, it will also be able to utilize the expanded capabilities to meet an increase in orders it expects from its military and law enforcement channel, both domestically and internationally. In fact, several potential partners within this channel have put AMMO’s .308 (7.62x51mm) and .338 ammunition, in both hard armor piercing incendiary (HAPI) and armor piercing (AP) variants, through independent testing to successfully confirm its best-in-class capabilities.
Wagenhals continued, “We anticipate orders from the military and law enforcement channel, both domestically and internationally, to ramp up in our first quarter of fiscal 2021. We are constantly receiving strong interest in our innovative and technologically advanced ammunition from potential partners, and we believe our expanded capacity will allow us to fulfill anticipated military and law enforcement purchase orders as we continue to gain traction in this channel.”
About AMMO, Inc.AMMO was founded in 2016 with a vision to change, innovate and invigorate the complacent munitions industry. The Company designs and manufactures products for a variety of markets, including law enforcement, military, hunting, sport shooting and self-defense. AMMO promotes branded munitions, including its patented STREAK™ Visual Ammunition, /stelTH/™ subsonic munitions, O.W.L. Technologies®, and Night OPS (One Precise Shot) – a lead-free frangible tactical line of munitions for self-defense. The Company’s corporate offices are headquartered in Scottsdale, Arizona. Manufacturing operations are based in both northern Arizona and Manitowoc, Wisconsin. For more information please visit: www.ammoinc.com.
