Terms

Series

8.75% Series A Cumulative Redeemable Perpetual Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

8.75%

Rate Type

Fixed

Annual Dividend

$2.19

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

May 18, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Indebtedness And Other Liabilities Of Subsidiaries, Any Senior Preferred Stock; Pari Passu With: Any Future Parity Preferred Stock; Senior To: Common Stock, All Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Shares Offered

1,097,200

Prospectus Summary

AMMO, Inc. (Nasdaq: POWWP) is offering 1,097,200 shares of its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock at a $25.00 liquidation preference, yielding $2.1875 per share annually ($0.546875 per quarter). These are direct preferred shares — not depositary receipts — with no stated maturity and a first optional call date of May 18, 2026 at $25.00. The stock is cumulative, meaning any dividends skipped by the board continue to accrue and must be paid in full before any distributions can be made on common or junior securities. The Series A Preferred ranks senior to AMMO's common stock and any junior equity securities, but is effectively junior to all existing and future debt obligations of the company and to all indebtedness and liabilities of its operating subsidiaries (SpeedLight Group, Enlight Group II / Jagemann, GunBroker-related entities, etc.). Because this is a holding-company issuance, preferred holders are structurally subordinated to subsidiary creditors — those subsidiaries have no obligation to upstream funds to service preferred dividends. There is no regulatory capital call provision, as AMMO is not a bank. A special optional redemption at $25.00 is available within 120 days of a Change of Control (defined as >50% voting power acquired by one person and simultaneous delisting from a major exchange). At the $25.00 offering price, the effective yield is exactly 8.75%. Dividends are paid quarterly on March 15, June 15, September 15, and December 15, with the record date being the last calendar day of the month preceding each payment month. The issue is unrated. Tax treatment is not explicitly addressed in the prospectus, but as a C-corporation issuer, dividends may qualify for the 15%/20% qualified dividend income (QDI) rate for individuals and the dividends-received deduction (DRD) for corporate holders, though investors should verify this independently. The dividend stopper provision prohibits any cash distributions on common stock or parity/junior preferred if Series A cumulative dividends are not current — providing a meaningful structural protection for preferred holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If AMMO has not paid full cumulative dividends on the Series A Preferred Stock, it may not pay dividends on, or redeem/repurchase, its common stock or any junior or parity preferred stock.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 59 (Average)