Smith & Wesson Brands, Inc. To Spinoff American Outdoor Brands, Inc.

One of the world’s leading firearms and accessories provider, Smith & Wesson announced on Friday that its board of directors had approved the spinoff of its outdoor products and accessories business unit into an independent company.

Upon completion of the spinoff, the two companies will be Smith & Wesson Brands, Inc. which will continue with the firearms business; and American Outdoor Brands, Inc., which will focus on the business of outdoor products and accessories.

The spinoff American Outdoor Brands will function as a separate publicly-traded company, apart from Smith & Wesson Brands. While Smith & Wesson Brands will stay listed on Nasdaq under the ticker “SWBI”. American Outdoor Brands will also be listed on Nasdaq and will trade under the ticker “AOUT.”

The Smith & Wesson Brands spinoff will initiate the separation through a spinoff process where it will distribute 100% of the shares of American Outdoor Brands common stock to shareholders of Smith & Wesson Brands on record as of the close of business on August 10, 2020. In addition, the distribution and completion of the shares will be effective at 12:01 am Eastern Time, on August 24, 2020. Each Smith & Wesson Brands shareholder will receive one share of American Outdoor Brands common stock for every four shares of Smith & Wesson Brands shares held. There will be no distribution of fractional shares in relation to the spinoff. Instead, a cash payment will be made.

From the distribution date, August 10, 2020, there will be two common ways to trade common stock of Stock & Wesson Brands, either with or without the American Outdoor Brands common stock distributions. First, is the “regular way” market (NASDAQ: SWBI) whereby Smith & Wesson Brands common stock shares will trade with the right to receive shares of American Outdoor Brands common stock on the date of distribution. Second, is the “ex-distribution” market (NASDAQ: SWBIV), whereby, shares of Smith & Wesson common stock will trade without rights to receive shares of American Outdoor Brands common stock on the distribution date.