Item 1.01 - Entry into a Material Definitive Agreement.

Jagemann Stamping Company Transaction

On November 5, 2020, AMMO, Inc. (the “Company”) paid $6,000,000 to Jagemann Stamping Company (“JSC”), allocated as follows: (i) payment in full of Note A, representing the balance due from the Company to JSC relating to the acquisition of Jagemann Munition Components in March 2019 and (ii) $592,982 remitted in partial payment of Note B, resulting in the parties’ execution of Amended Note B which has a starting principal balance of $1,687,664 (“Amended Note B”). The Amended Note B principal balance carries a 9% per annum interest rate and is amortized equally over the thirty six (36) month term. As a result of the payment in full of Note A JSC shall release the accompanying security interest in Company assets which secured Note A. Concurrently, upon entry into Amended Note B, JSC and the Company entered into the First Amendment to General Business Security Agreement (“FAGBSA”) to reflect a revised list of collateral in which JSC has a security interest.

12% Promissory Note

On November 5, 2020, the Company and Enlight Group II, LLC (“Enlight”), a wholly owned subsidiary of the Company (together, “Borrower”), entered into a promissory note (the “12% Note”) with Lisa Kay (“Lender”), an individual, for the principal sum of Four Million & 00/100 Dollars ($4,000,000.00) (“Principal”), which accrues interest at 12% per annum (“Interest”). The 12% Note has a maturity date of November 5, 2023 (“Maturity Date”).

Pursuant to the terms of the 12% Note, the Borrower shall pay Lender: (i) on a monthly basis, beginning December 10, 2020, all accrued interest (only), and (ii) on the Maturity Date, the remaining outstanding principal balance of the Loan, together with all unpaid accrued interest thereon.

The 12% Note is unsecured and is not convertible into equity securities of the Company. However, Borrower has agreed that it shall provide commercially reasonable collateral promptly upon the payment of that certain JSC Promissory Note and JSC’s contemporaneous release of security supporting that financial accommodation. The 12% Note contain terms and events of default customary for similar transactions. The Company is using the net proceeds from the transaction to pay a portion of the outstanding balance owed to JSC.

8% Unsecured Convertible Promissory Notes

On November 5, 2020, the Company entered into Convertible Promissory Notes with three (3) accredited investors (the “Investors”), for an aggregate purchase price of $1,445,000 (each a “8% Note,” collectively, the “8% Notes”). The 8% Notes accrue interest at a rate of 8% per annum and mature on November 5, 2022 (the “Maturity Date”). Additionally, the 8% Notes contain a voluntary conversion mechanism whereby any principal and accrued interest on the 8% Notes, may be converted in holder’s discretion into shares of the Company’s Common Stock at a conversion price of $2.00 per share (“Conversion Price”). If not previously paid in full or converted, on the 180^th day following the Maturity Date, the principal and interest due under the 8% Notes shall automatically be converted to common stock shares at the Conversion Price The 8% Notes contain customary events of default (each an “Event of Default”). If an Event of Default occurs, the outstanding principal amount of the 8% Notes, plus accrued but unpaid interest, and other amounts owing with respect to the 8% Notes will become, at the 8% Note holder’s election, due and payable in cash.

Important Notice regarding the Transaction Documents

The foregoing summary of the terms and conditions of the Amended Note B, the FAGBSA, the 12% Note, and the 8% Notes do not purport to be complete and is qualified in its entirety by the full text thereof, which shall be filed as exhibits to the Company’s Quarterly Report on Form 10-Q covering the fiscal quarter ending September 30, 2020.

The Amended Note B, the FAGBSA, the 12% Note, and the 8% Notes shall be included as exhibits to our Form 10-Q for the period ended September 30, 2020 to provide investors and security holders with information regarding their terms. They are not intended to provide any other financial information about the Company or our subsidiaries and affiliates. The representations, warranties and covenants contained in the agreements were made only for purposes of that agreement and as of specific dates and were solely for the benefit of the parties to such agreement.