By Joseph P. Tartaro | Executive Editor
Representatives from Fifth Third Bank visited Spike’s Tactical, an Apopka, FL-based firearm manufacturer, at the beginning of October to inform them that the bank was discreetly planning to exit the banking sector for gun-related businesses.
According to Spike’s Tactical co-owner Angela Register, the bank representative informed her and their chief financial officer that their business line of credit would not be renewed and encouraged them to find a new bank to hold their accounts, even mentioning that their commercial mortgage should be transferred or it could potentially be called early.
“This is frightening because yet again, we’re continuing to see the Second Amendment under attack in more and more places,” said Register. “It also seems completely hypocritical that institutions, which have been and continue to be protected by guns, are now attacking the very industry that is often their first line of defense.”
Fifth Third Bank, which according to Forbes is one of the largest banking institutions in the US, has now apparently joined a growing list of banks, which are choosing to no longer do business with firearms manufacturers.
Earlier this year, Bank of America and CitiGroup, announced they would also begin restricting their business dealings with gun-related companies.
As a result of the decision made by Fifth Third, Spike’s is now looking for a new bank to help them manage their multi-million-dollar yearly revenue.
Banking is not the only angle where firearms manufacturers and dealers have been under attack. Companies like YouTube, Facebook, Shopify, Google, Walmart, Levi Strauss and Dick’s Sporting Goods have all made recent moves to restrict or prohibit gun-related business.
And New York Gov. Andrew Cuomo has launched a regulatory initiative to discourage banks and insurance companies from doing any business with pro-gun organizations, with emphasis on the National Rifle Association, and the gun manufacturing industry.
“We understand that the gun industry is not a protected class and that banks and other businesses can choose to not do business with us, but we also believe that customers should know if that vendor has decided to enter the political arena and they’ve taken a stand against guns,” said Register. “Additionally, this is yet another example that the market is beginning to look highly lucrative for companies to emerge that will solely support the gun industry, which is estimated at $51 billion per year and employs more than 300,000 people in the US,” Register said.
Spike’s Tactical was founded the day before 9/11/2001 by Mike and Angela Register and is a family-owned business that employs around 40 people, and all products are made exclusively in the USA and assembled in Florida.
State Supports Gunmaking
Gunwerks will use a $6 million grant/loan package from the State of Wyoming to build a new 43,000-square-foot firearms manufacturing facility in Cody, providing consolidation under one roof and creating new jobs, the Billings Gazette reported.
The Wyoming State Loan and Investment Board has approved a $6 million grant and loan funding package.
The Cody Enterprise reported that the action was the final step needed for Gunwerks to increase production.
Company spokesman Michael LaBazzo expressed appreciation for the decision, saying without the financial support the company would not be able to complete its expansion in Cody.
Plans are to begin construction this spring so Gunwerks can move into a new, larger facility by the end of 2019.
Gunwerks designs and manufactures high-precision, long-range shooting systems that include the rifle, optics, rangefinder and ammunition. Gunwerks markets its shooting systems internationally.
Annual Meeting Results
American Outdoor Brands Corporation, formerly known as Smith & Wesson Corp., on Sept. 28 reported voting results for its 2018 Annual Meeting of Stockholders held September 25, 2018. The results reflect that stockholders re-elected all 10 directors with a majority of the votes cast; approved on an advisory, non-binding basis the compensation of the company’s named executive officers for fiscal 2018; and ratified the appointment of Deloitte & Touche LLP as the company’s independent auditors. Stockholders also approved, against the recommendations of the company’s leadership, a stockholder proposal that the company issue a “gun safety” report.
Barry Monheit, the company’s chairman of the board, and James Debney, president and Chief Executive Officer, made the following statement on that proposal:
“Throughout our proxy season, we made known – through many public filings – our position that proposal 4 was bad for our stockholders, our customers, our employees and our company. The proposal was politically motivated and represented a debate that belonged not in our annual meeting and proxy, but in the legislature. The proposal – put forward by a very small group whose sole focus was to drive an anti-firearms agenda at the expense of our company and its stockholders — won by a very slim margin of 52.16% to 47.84% of votes cast. This result makes clear to us that a significant number of our voting stockholders shared our position. We remain committed to continuing our meaningful support of and participation in actions that truly make our communities safer.”
Hurricane Relief
The National Shooting Sports Foundation® (NSSF®), the trade association for the firearms industry, has announced that it has arranged to donate $10,000 to the American Red Cross to be used in its Hurricane Florence relief efforts in the Southeastern US. As it has done in the aftermath of previous natural disasters, NSSF has also prepared a relief fund to aid its FFL, range and manufacturing members whose businesses were affected from the massive hurricane.
