SCOTTSDALE, AZ -(Ammoland.com)- AMMO, Inc. placed Steven Urvan, Chief Strategy Officer, and Susan Lokey, Chief Financial Officer of GunBroker.com, on administrative leave, claiming the pair of possibly “misappropriated the Company’s data and digital assets.”
“The company has reason to believe these individuals may have misappropriated the Company’s data and digital assets and transmitted that data to a third party controlled by Mr. Urvan and with which Ms. Lokey is associated,” AMMO Inc. said in its press release.
AMMO, Inc. is the parent company of GunBroker.com, which it acquired from Mr. Urvan in a $240 million merger in 2021. Mr. Urvan became the head of a new organization called the Urvan Group. The new group became the largest shareholder of AMMO, Inc. The Urvan Group holds a 17.1% stake in the parent company. Ms. Lokey is also a member of the Urvan group. In addition to the Urvan group, Urvan owns 20,040,000 shares of common stock, and Lokey holds 40,000 of common stock in AMMO, Inc.
The suspension comes just weeks after Urvan announced his intention to replace the entire Board of AMMO, Inc.
“In an August letter to shareholders, Urvan wrote that he planned to “nominate a full slate of highly qualified director candidates, including myself, for election to the Company’s Board at this year’s Annual Meeting.”
The current Board of AMMO, Inc. responded by disagreeing with Mr. Urvan’s assertions and said it would provide shareholders with more information later.
“AMMO’s Board and management team are focused on executing on our strategy to drive long-term shareholder value. We disagree with many of the assertions and analysis contained in the public comments from Mr. Urvan and will be providing additional information for our shareholders in coming days and weeks. In the meantime, the Board and management team remain committed to ensuring AMMO is operated for the benefit of all its shareholders. We continue to invite all shareholders and other stakeholders to share with us their views and perspectives on these topics,” the Board wrote.
It appears that yesterday’s press release was that additional information. The Board of AMMO, Inc.’s claimed that Urvan’s attempt to replace the Board was a way to block the investigation into the misappropriation of data. AMMO, Inc told AmmoLand News that the information that was taken was transferred just to Urvan’s other entity. The company does not believe customer information was shared beyond that entity.
“Urvan was aware of our concerns and our prior attempts to investigate and discern more information. We believe that his recently announced proxy contest to replace the entire Board may be, at least in part, an attempt by Mr. Urvan to thwart our investigation and driven by his desire to avoid accountability,” AMMO Inc. said in its press release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has recently been visiting people’s homes that purchased Rare Breed FRT-15 triggers and solvent traps from GunBroker.com. Most visits were tied to a GunBroker.com seller named RifleRemedy2000. The website user claimed that he turned over no information to the ATF and pointed the finger back at GunBroker.com. When the news of the misappropriated data broke, some argued that the “data leak” was how the ATF got the customer information. AmmoLand News does not believe that to be the case.
This situation was not a traditional data leak. No data was stolen by hackers or by any government agency. AMMO, Inc. confirmed that the misappropriation of data had nothing to do with any RifleRemedy2000 or any government operation. AMMO Inc claims no data has been transferred to any government agency.
Mr. Urvan and Ms. Lokey have not commented on the AMMO, Inc. Board’s action.
About John Crump
John is a NRA instructor and a constitutional activist. John has written about firearms, interviewed people of all walks of life, and on the Constitution. John lives in Northern Virginia with his wife and sons and can be followed on Twitter at @crumpyss, or at www.crumpy.com.