Pacific Safety Products Inc.

Pacific Safety Products Inc.

January 06, 2005 17:46 ET

Pacific Safety Products Inc. Announces the Completion of a $4.8 Million Equity Financing with Acumen Capital Partners


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PACIFIC SAFETY PRODUCTS INC.

TSX VENTURE SYMBOL: PSP

JANUARY 6, 2005 - 17:46 ET

Pacific Safety Products Inc. Announces the Completion
of a $4.8 Million Equity Financing with Acumen Capital
Partners

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Jan. 6, 2005) - Pacific Safety
Products Inc. - (TSX VENTURE:PSP) - ("PSP" or "the Company") - is
pleased to announce that the Company has completed a second private
placement financing ("the Financing") with Acumen Capital Finance
Partners Limited ("Acumen"), as underwriter. The Company received
aggregate gross proceeds of $4,812,500 in consideration for the issuance
of 1.750 million units of the Company.

The units were issued at a price of $2.75 per unit, each unit consisting
of one common share of PSP and one-half common share purchase warrant.
Each whole common share purchase warrant entitles the holder to acquire
one common share of PSP at a price of $3.75 per share at any time up
until January 9, 2006, 5:00 PM Mountain Time. If all of the warrants are
exercised, aggregate gross proceeds of an additional $3,281,250 would be
realized in exchange for 875,000 additional common shares of PSP. There
is a four-month hold period on the shares and the warrants, which
expires May 7, 2005.

Cash compensation of $360,937.50, or 7.5% of the gross proceeds of the
offering, was paid to the underwriter. In addition, compensation options
to acquire up to 131,250 units were granted to the underwriter. These
compensation options expire on January 9, 2006.

The Financing was completed by means of an exempt private placement. The
net proceeds of approximately $4.425 million will be used for general
corporate purposes and, in particular, to help establish a manufacturing
presence in the United States and to provide the Company with working
capital to deliver large contracts in the Company's current order book.

"Once again Acumen has demonstrated a strong ability to assist PSP in
raising the necessary capital to continue to grow and expand the
Company," comments Brad Field, CEO. "The additional working capital will
further strengthen PSP's ability to develop new product offerings and
expand into new markets."

About Acumen Capital Finance Partners Limited - Acumen Capital Finance
Partners Limited is an independent, full service investment dealer based
in Calgary, Alberta, Canada. Acumen's business has two overlapping
focuses:

1. Independent retail brokerage and wealth management, offering a full
toolbox of investment products and a high level of customer service.

2. Investment banking, institutional sales and trading, and in-house
research operations focused on junior oil and gas producers and small
cap non-resource growth companies.

With its offices located in an historic building in the heart of
downtown Calgary, Acumen prides itself on cultivating a boutique
atmosphere. Acumen is 100% employee owned and the employees contribute
to the ethical management and success of the firm. Clients enjoy a high
level of customer service due to employee pride of ownership and
interdepartmental collaboration. Our core values and culture shine
through the integrity of our people and the quality of our relationships.

Acumen is a Participating Organization of the Toronto Stock Exchange, a
Member Firm of the TSX Venture Exchange, and a Member Firm of the
Investment Dealers Association of Canada (IDA). Client comfort is
enhanced by Acumen's membership in the Canadian Investor Protection Fund.

About PSP - The mission statement of Pacific Safety Products Inc. is
...we bring everyday heroes home safely™. PSP is an established
industry leader in the production, distribution and sale of
high-performance and high-quality safety products. These products
primarily include body armour to protect against ballistic, stab and
fragmentation threats. PSP is the largest armour manufacturer in Canada
and has significant international customers. The Company also produces
tactical clothing and emergency medical kits. These products are
marketed under the labels Pacific Emergency Products®, PROTECTED by
PSP™, EXPLOSAFE®, and O2B.O.S.S.™. The Company's primary
customers include military agencies, law enforcement agencies, private
security companies, fire departments and emergency medical service
organizations.

The Company strives to provide quality protection solutions by
effectively integrating the latest technologies to serve these
customers' needs. Founded in 1984, PSP has grown to include more than
130 employees at three Canadian facilities in Kelowna, British Columbia;
Brampton, Ontario; and Arnprior, Ontario. These facilities are equipped
with complete design, production and research capabilities. The Kelowna
facility has one of the most advanced non-government operated ballistic
research labs in North America.

In light of the sensitive nature of its products and customers, PSP may
not disclose all information regarding end-users, government agencies or
countries purchasing its products. It continues to be PSP's corporate
policy to conduct business only with recognized domestic law
enforcement, military and government agencies and foreign agencies that
are approved by the Canadian Department of Foreign Affairs and
International Trade.

Pacific Safety Products Inc. is a reporting issuer in British Columbia,
Alberta and Ontario, Canada and publicly trades under the symbol PSP on
the TSX Venture Exchange.

Forward-Looking Statements: This release may contain forward-looking
statements based on management's expectations, estimates and
projections. All statements that address expectations or projections
about the future, including statements about the Company's strategy for
growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the
forward-looking statements may be identified by words like "expects,"
"anticipates," "plans," "intends," "projects," "indicates," and similar
expressions. These statements are not guarantees of future performance
and involve a number of risks, uncertainties and assumptions. Many
factors, including those discussed more fully elsewhere in this release
and in documents, which may be filed with the British Columbia
Securities Commission, Alberta Securities Commission, the Ontario
Securities Commission and / or the TSX Venture Exchange, as well as
others, could cause results to differ materially from those stated.
These factors include, but are not limited to changes in the laws,
regulations, policies and economic conditions, including inflation,
interest and foreign currency exchange rates, of countries in which the
Company does business; competitive pressures; successful integration of
structural changes, including restructuring plans, acquisitions,
divestitures and alliances; cost of raw material, research and
development of new products, including regulatory approval and market
acceptance; and seasonality of sales in some products.

PSP™, PROTECTED BY PSP™, O2BOSS™ and ...we bring everyday
heroes home safely.™ are trademarks of Pacific Safety Products Inc.

Pacific Emergency Products® and EXPLOSAFE® are registered trademarks
of Pacific Safety Products Inc.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pacific Safety Products Inc.
    Shawn VanderMeer
    Chief Financial Officer
    Email: svandermeer@pacsafety.com
    or
    Pacific Safety Products Inc.
    Investor Relations
    1-800-667-5487 or (250) 491-0911
    Email: ir@pacsafety.com
    Website: www.pacsafety.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.