Pacific Safety Products Inc.

Pacific Safety Products Inc.

April 24, 2007 06:00 ET

Pacific Safety Products Inc. Announces Extension of Completion of Gator Hawk Asset Acquisition

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - April 24, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") announced today that it intends to extend the deadline for completion of its previously announced acquisition (the "Acquisition") of the assets of Gator Hawk Armor Inc. ("Gator Hawk") to June 29, 2007.

The Acquisition is subject to U.S. Federal Court approval prior to closing in connection with receivership proceedings of one of Gator Hawk's preferred shareholders. It is currently expected by U.S. advisors to the Company that the process for U.S. Federal Court approval of the Acquisition will extend beyond the previously anticipated deadline of April 30, 2007 due to factors inherent in the U.S. court system and the procedures relating to the Gator Hawk preferred shareholder. The Company has no reason to believe that the Court will not approve the application given the beneficial outcome to the Receiver and creditors and past precedence in this type of matter.

As a result, the Company anticipates the Acquisition may be delayed to no later than June 29, 2007, and in any event well before the expiry of the four-month hold period attached to the subscription receipts issued on March 27, 2007 to finance in part the Acquisition (the "Subscription Receipts") and the common shares underlying the Subscription Receipts (which hold period will expire on July 28, 2007).

Proceeds from the issuance of the Subscription Receipts are currently being held in escrow pending completion of the Acquisition, with each Subscription Receipt being exchangeable for a common share of the Company upon closing of the Acquisition or, if closing of the Acquisition does not occur by the deadline, the proceeds will be returned to subscribers. In order to prevent the automatic cancellation of the Subscription Receipts and return of escrowed funds on the previous Acquisition closing deadline of April 30, 2007, the Company intends to obtain written acknowledgements from purchasers of Subscription Receipts consenting to the extension of the Acquisition closing deadline to June 29, 2007.


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 armour manufacturer in Canada and supplies its products to the Canadian Department of Defence, Federal Government Agencies and major law enforcement organizations across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products to U.S. based law enforcement and private security firms. The Company also produces tactical clothing and emergency medical kits.

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.

Forward-Looking Statements

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding the Company's intention to complete its acquisition of the assets of Gator Hawk and with respect to the potential exchange of the Subscription Receipts for common shares of the Company. There are no assurances that the Subscription Receipts will be exchanged for common shares or that the Acquisition will be completed, or in the event of completion, that the Acquisition will be accretive to the Company or that the business acquired will be successfully integrated into PSP's current business.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include: failure to successfully negotiate or subsequently close such transactions, inability to obtain required shareholder or regulatory approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of shareholder, regulatory and governmental approvals for Pacific Safety's proposed transactions, and the ability of management to successfully consummate the proposed transactions. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Safety Products Inc.
    David Scott
    Chairman and Chief Executive Officer
    (250) 491-0911 or 1-888-PSP-ARMR (1-888-777-2767)
    (250) 491-0930 (FAX)