Pacific Safety Products Inc.

Pacific Safety Products Inc.

August 31, 2011 18:50 ET

Pacific Safety Products Announces New Credit Facility Financing

ARNPRIOR, ONTARIO--(Marketwire - Aug. 31, 2011) - Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour solutions, today announced that it has entered into a Loan Agreement ("Agreement") with Royal Bank of Canada ("RBC") to provide a credit facility.

Under the terms of the Agreement, advances are repayable on demand with interest payable monthly calculated at RBC's prime lending rate plus 1.95% per annum. As security for the loan, RBC has been granted a security interest in all of the assets of PSP and its subsidiaries. The maximum credit facility is $1.0 million.

PSP is required to meet certain general covenants as outlined in its credit facility agreement with RBC. The Agreement has no financial covenants.

"We are delighted to be working with one of Canada's leading financial institutions," stated Doug Lucky, CEO. "We look forward to the opportunity to build a strong relationship as the Company continues to execute its plans."

The new Agreement is in replacement of the Company's previous principal Canadian operating lender.

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 for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, and protective products against chemical and biological hazards. PSP is the largest body armour manufacturer in Canada, directly supplying the Canadian Department of National Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products under the GH Armor Systems® brand to U.S. based law enforcement and private security firms. The Company also produces tactical clothing. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

Contact Information

  • Douglas Lucky
    Chief Executive Officer
    Pacific Safety Products Inc.
    (613) 623-6001