Whitefish, MT / May 6, 2014 / Lamperd Less Lethal Inc. (LLLI), a manufacturer of less lethal weapons and ammunition for defensive purposes, has made substantial progress over the past couple quarters bringing its new launchers to market. After successfully engineering the launchers, the company signed an order from the Canadian government for 350 units and delivered the first 250 units in April 2014.
The new ultra-light single-shot launchers are made from high-performance aluminum and weigh just 3.7lbs. By comparison, competing launchers start at approximately 9lbs, which makes a big difference in high-stress situations. The company is also releasing a new ultra-light multi-shot launcher that weights just 5.4lbs with a magazine that enables significantly faster deployment.
After delivering its first 250 launchers on April 4th, the company received a Letter of Commendation from the Federal Government of Canada. The letter indicated that the new launchers represented an "increased level of protection for both the frontline correctional officers and inmates alike by providing a safer, more accurate platform for utilization of less lethal options employed in [certain] situations".
In addition to the order from the Canadian government, the company remains in discussions with a large military end user that has expressed interest in the launchers, as well as several other interested parties. Management demonstrated the equipment to the governments of Oman and Saudi Arabia twice in 2013 and noted that they showed "great enthusiasm" for the products' potential.
Growing End Markets
As a whole, the market for non-lethal weapons is set to grow from $880.5 million in 2013 to $1.14 billion by 2018, according to Research and Markets. Companies like TASER International Inc. (TASR) have carved out a niche in non-lethal law enforcement weapons, but companies like Lamperd Less Lethal address the need for more forceful weapons in corrections or paramilitary cases, like SWAT teams.
For example, Rio de Janeiro's Special Operations Battalion ("BOPE") has been clamping down on crime in Brazil's favelas since 2008, especially with the upcoming Summer Olympics to be hosted in the country. While working to clean up the region, BOPE has been accused by human rights groups of using unnecessary force, which could drive demand for non-lethal alternatives that are still very effective.
Countries in the Middle East remain additional key markets that could be well served with effective less lethal weapons. Civilian protests have led to violence and death in many countries during the Arab Spring. Non-lethal weapons could reduce the likelihood of unnecessary deaths and the resulting chaos. Many governments in the region have already begun expressing interest in the new product lines.
Investors in traditional weapons manufacturers, like Smith & Wesson Holding Corp. (SWHC) or Sturm, Ruger & Company (RGR), may also want to take a look at Lamperd Less Lethal as an alternative play in the weapons industry. The growth of non-lethal weapons could help avoid the impact of defense cuts made by the U.S. and other developed countries on traditional manufacturers.
Last quarter, the company reported revenues that surged 471% due to its new orders from the Canadian government. Additional orders from the Middle East and other regions around the world, driven by the secular growth in the non-lethal weapons industry, could further accelerate its revenues and bring the firm closer to a key breakeven point and unlock long-term value for shareholders.
Shares of Lamperd Less Lethal Inc. (LLLI) are trading 8% higher so far this year and 12% higher over the past month.
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SOURCE: Emerging Growth LLC