Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

January 19, 2015 16:01 ET

Pacific Safety Products Inc. Announces Private Placement of 10% Convertible Debentures

ARNPRIOR, ONTARIO--(Marketwired - Jan. 19, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or the "Company") announced today that it intends to issue, on a non-brokered private placement basis, 10% unsecured convertible debentures of the Company ("Debentures") in an aggregate principal amount of up to $650,000 (the "Private Placement").

The Debentures will mature on February 18, 2018 (the "Maturity Date") and are convertible at the holder's option into common shares in the capital of the Company ("Common Shares") at any time prior to the Maturity Date at a conversion price of $0.15 per Common Share, subject to adjustment in certain events. The Company may, at any time prior to the Maturity Date, redeem the Debentures at par plus accrued and unpaid interest to the redemption date.

The Debentures will be unsecured obligations of the Company and will bear interest at a rate of 10% per annum, payable annually on the anniversary date of the Debentures. At the option of the Company, interest may be paid in cash, Common Shares, at the volume weighted average price of the Common Shares for the period of 20 trading days ending on the day that is 5 business days immediately preceding the interest payment date, or a combination of cash and Common Shares.

The Company intends to use the net proceeds of the Private Placement to repay the principal amount and accrued interest outstanding on certain secured debentures of the Company maturing on February 18, 2015. The balance of the net proceeds (if any) will be used for general working capital purposes.

It is expected that insiders of PSP will be subscribing for greater than 25% of the Private Placement, on the same terms as arm's length investors. The Common Shares underlying the Debentures (if exercised prior to the date that is four months and one day from the date of issuance), will be subject to a four month hold period from the date of issuance of the Debentures in accordance with applicable Canadian securities laws.

The Private Placement is expected to close on or about February 18, 2015 and is subject to approval of the TSX Venture Exchange.

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, tactical clothing, 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.

Forward-Looking Information: This news release contains certain statements which may constitute "forward-looking information" within the meaning of applicable securities laws. These statements relate to anticipated or assumed events or results and, in some cases, can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms. The forward-looking events and circumstances discussed in this news release, including the terms and completion of the Private Placement and the expected use of proceeds of the Private Placement, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Safety Products Inc.
    Terry Vaudry
    Chief Executive Officer
    (613) 623-6001
    www.pacsafety.com