Since we officially launched our crowdfund last week we’ve raised $68,041 from 132 investors!
During that time we’ve had a lot of questions about our offering. Since this is so different from what most people know, I figured I would put together some “FAQs” for everyone…
Yes! It is private company stock in AMMOSQUARED INC, a Delaware C-Corp. We are issuing Preferred Shares which means you have some financial benefits compared to common stock. (See why Warren Buffett buys Preferred Stock)
Are you going public? Why don’t I see your name/ticker on E-Trade?
We are still a private company, issuing private stock and not going public via an IPO. This is possible through a relatively new piece of legislation that allows Equity Crowdfunding by small companies. We are required to go through an “equity crowdfund portal” to facilitate the transaction. Our crowdfund portal is Wefunder which is one of the largest and most respected crowdfunding portals available in the US. They only accept 3% of applicant companies, so we’re very lucky to be able to do this! Check out their great FAQ about how equity crowdfunding works.
How do I invest? What is the minimum?
We can only offer shares through Wefunder so you’ll need to go there and create an account to invest. It is very easy and will take 5 minutes of your time. The minimum investment is only $100 because we wanted everyone to be able to join in. Now, if you CAN invest more you’ll receive investor perks – like a lifetime discount on ammo if you invest $500…:) Also, until we raise $150k, you get more stock for your money because we want to build some good momentum early on that we can show off to the press to attract other investors and 2A supporters.
How do investors benefit from this?
The first form of return you will see will come from dividends – meaning you’ll get a check in the mail for your investment (or maybe we can pay it out in ammo? Hmmm… interesting. I’ll have to research that one.) To be clear, we are NOT currently paying dividends – but we WILL as soon as we get our tech built, operations squared away, and the company is comfortably throwing off excess cash. Eventually, all investors want to get their money back. The founders do too! When the time is right we will consider any acquisition offers that come our way (perhaps from a large online retailer or ammunition manufacturer – who knows). Or we may decide we want to do a public IPO. After five years we’ll start considering what options are open to us.
Why five years? Here is something you may not realize: if our investors hold their stock for 5+ years the gains will be tax-free.
Yep, we fall under IRS Section 1202 which is also called the “Small Business Stock Gains Exclusion”. So that is a big plus if we knock it out of the park. It also gives you an idea or our time horizon – we will not really be thinking about an investor exit until at least 5 years have passed.
How big can you guys get… realistically.
Honestly, I don’t know the answer to this question. I can only talk about our vision, the team, traction to date, and the industry we’re trying to disrupt. All of the topics are detailed on our Crowdfund Page and investor deck so I won’t go into them here except to say this: As someone who started with just an idea, has grown AmmoSquared to where it is today, talks to customers every day, hears how our business is benefiting lives and hears how much customers love what we are doing, I’m more excited than ever for our potential!
When you think about the fact that there are an estimated 94 million gun owners in America, and contrary to what the mainstream media might be saying, the numbers are all up. In 2018, over 8 billion rounds of ammunition were manufactured. That is a $4 billion opportunity right there.
Now add to it our vision for making ammunition even more convenient by creating a digital ammunition exchange, and mix in society’s general move toward all things digital – movies, music, books, checkups, notary services, you name it, and we have an amazing opportunity for revolutionizing an entire industry!
I hope you’ll join us and invest today...