Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

February 18, 2015 18:38 ET

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

ARNPRIOR, ONTARIO--(Marketwired - Feb. 18, 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") is pleased to announce that it has completed a previously announced non-brokered private placement of 10% unsecured convertible debentures of the Company ("Debentures"), issuing Debentures in an aggregate principal amount of $749,000 (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 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 will be used for general working capital purposes.

The Debentures issued in connection with the Private Placement, as well as the underlying Common Shares, are subject to a four month hold period from the date of closing of the Private Placement in accordance with applicable Canadian securities laws.

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 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

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