- Ammunition manufacturer Ammo Inc. said Monday it reached a settlement in its board skirmish with Urvan Group, a shareholder that called for the ouster of Ammo’s board. Urvan Group has a 17.1% stake in Ammo Inc.
- Steven Urvan, the head of the Urvan Group, will serve as an Ammo board member alongside two new appointees, Christos Tsentas and Wayne R. Walker, increasing Ammo’s board from seven to nine members, according to the settlement agreement filed with Securities and Exchange Commission (SEC).
- Under the agreement, Ammo Inc. will also delay the announcement of its planned split into two separate entities, Action Outdoor Sports, Inc., and Outdoor Online, Inc., “pending the further evaluation of strategic options by the Board,” the company said in a SEC filing.
Urvan, who previously served as the company’s chief strategy officer, was suspended from his executive duties in September by Ammo Inc. along with fellow Urvan Group member Susan Lokey — then CFO of Ammo subsidiary GunBroker.com — following allegations of misappropriated data and digital assets.
The suspension followed a few weeks after the Urvan Group released a letter detailing its intent to replace Ammo’s board. After Urvan was placed on administrative leave, he and the Urvan Group urged the manufacturer to set a date for their shareholders meeting as part of that bid to replace the company’s board with seven new members, CFO Dive previously reported. The proposed new nominees listed by Urvan Group included Urvan himself as well as Tsentas and Walker.
“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,” Urvan said in a statement. “I see a bright future for AMMO and look forward to working with my fellow board members to identify opportunities to drive profitable growth.”
Tsentas currently serves as a partner in Albion River LLC, a private investment firm, and has served on the board of fellow firearm manufacturer Magpul Industries Corp., according to the press release. Walker, meanwhile, served as president of Walker Neil Partners, a business consulting firm, and is currently serving on several boards including for Warp Technologies Inc.
Ammo Inc. has ended their internal investigations into both Urvan and Lokey, according to the press release.
“We are pleased to have reached a constructive outcome with The Urvan Group,” Fred Wagenhals, Ammo chairman and CEO said in a statement. “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.”
According to the settlement agreement, the Urvan Group will also be withdrawing its shareholder nominations as well as its demand to inspect Ammo’s books and records. The company will also hold its annual shareholder meeting no later than Dec. 15, according to the agreement.
Ammo Inc. and Urvan Group did not respond to requests for comment.