NASDAQ : POWW
Market Awareness Program Case Study
A market awareness program presents numerous immediate as well as long-term benefits to the company. The program helps to tell the our clients story to millions of potential investors who otherwise have no idea the company exists. The program greatly increases trading volume, fixes the disconnect between the company’s intrinsic value and its stock price, removes selling overhangs, helps to defend the stock from short attacks, fixes the chart, positions the stock appropriately for an equity raise and creates currency for stock acquisitions.
|Immediate Benefits||Long-term Benefits|
NASDAQ : POWW
AMMO, Inc. (NASDAQ: POWW) came public in February 2017 on OTCQB. The stock did nothing for years, trading an average of 1,205 shares per day in 2017, 6,934 shares per day in 2018 and 13,379 shares per day in 2019. As a result, without having a liquid currency, the company was never able to truly benefit from being public and instead only incurred public company expenses. The same trend was continuing into 2020; despite huge uptick in the ammunition sales across the US, the stock continued to trade very poorly on thin volume, trending in a low-$1 to mid-$2 price range on an average daily volume of 56k share per day.
The awareness campaign launched with the stock trading 700k shares per day. A 1,145% Increase compared to the pre-program average.
Realizing that things will not improve on their own, in early October the Company decided to engage Trending Equities for their IR and market awareness expertise. The awareness program launched on October 16th, 2020, with the stock trading 700k shares that day (a 1,145% volume increase compared to the pre-program 2020 average). Since the program was launched on October 16, 2020, the daily trading volume increased to 2.5mm share per day vs. only 56k shares per day prior to the launch of the program (a 4,400% improvement) with a highest day trading volume of 37.2mm shares on 1/13/2021.
Since the beginning of 2021, POWW traded 390mm shares, or 3.2mm shares per day on average, compared to a total of only 12mm shares in nine and a half months of 2020 before the awareness campaign began, or only 62k share per day on average.
The market awareness program has not only improved daily trading volumes for POWW but also allowed the company to successfully complete a follow-on equity raise of $20.6mm (including over-allotment option) and to concurrently up-list the company to NASDAQ on December 1, 2020. The raise was done at $2.10 per share; however, POWW decided to keep Trending Equities engaged and as a result not only did the trading volume continue to increase, trading around 3 million shares per day since the raise, but the stock price improved drastically reaching an intra-day high of $9.95 on 2/16/21 (a 474% increase from the deal price).
By building a real liquid currency and improving its stock price, POWW was able to do another follow on offering and raising $115mm at $5.00 per share on 3/16/21. This is a 238% price improvement to the deal that was done only 3 months ago.
By being well capitalized and having a liquid stock, POWW was able to complete a $240mm acquisition of GunBroker.com on 5/3/21, to begin construction of new state-of-the-art ammunition manufacturing plant in
Manitowoc, Wisconsin on 6/21/21 and to win a U.S. Department of Defense contract for the development and manufacture of ballistically matched multi-purpose rounds on 6/23/21.
Finally, the company was added to the Russell 2000® Index and Russell Microcap® Index on June 28, 2021. All of this was possible because the company decided to focus on its stock price and develop a liquid currency and engaged Trending Equities to run their IR and market awareness program. As a result, POWW currently trades approximately $2.5mm shares per day at around $9.00 per share (an 80% improvement compared to the latest capital raise). This is a perfect example of how a market awareness program prepared and executed by Trending Equities helped the Company to develop a liquid currency, facilitated several capital raises, an up-list to a primary exchange and helped to improve and stabilize the Company’s stock price after each deal.
The TE Difference
This chart illustrates the daily price and volume action of the stock before and after Trending Equity began the awareness program. Chart clearly illustrates the increase in daily trading volume on October 16, 2020, the day awareness program was launched. The chart shows volume increasing significantly but price remaining subdued because of the marketing for the equity raise. Then, after the $20.6mm raise was completed on December 1, 2020, the chart clearly shows both daily trading volume and stock price increasing drastically reaching an intraday high of $9.95 on 2/16/21. Stock has traded down somewhat after that while the Company was marketing the $115mm raise; however, the stock price rebounded quickly after the raise currently trading approximately 2.5mm shares per day close to all-time highs price of about $9.00 per share (80% above the recent equity raise).