ARNPRIOR, ONTARIO--(Marketwire - Oct. 12, 2012) - Pacific Safety Products Inc. ("PSP" or the "Company") (PSP.V) announced today that it intends to issue a total of 800,000 common shares in satisfaction of $40,000 of interest owing on the 10% convertible debentures of PSP ("Debentures") indirectly held by Mr. Fraser Campbell and Mr. Terry Vaudry, at a price of $0.05 per share. An aggregate of $1,000,000 of principal amount of Debentures were originally issued by the Company on August 17, 2010, to investors including Messrs. Campbell and Vaudry. The Company satisfied interest owing on the Debentures held by other investors through the payment of $60,000 in cash.
In addition, PSP intends to issue to Mr. Vaudry, Mr. Dirk Schlimm and Mr. Ken Hight an aggregate of 900,000 common shares in satisfaction of an aggregate of $45,000 of accrued director's fees for the period from January 1, 2012 to September 30, 2012, at a price of $0.05 per share.
PSP also intends to issue to Fraser Campbell, at a price of $0.05 per share: (i) 200,000 common shares in satisfaction of $10,000 of accrued director's fees for the period from January 1, 2012 to June 30, 2012, and; (ii) 150,000 common shares in satisfaction of $7,500 of accrued compensation for acting as Interim Chief Executive Officer for the period of July 18, 2012 to September 20, 2012.
Messrs. Campbell, Schlimm and Hight are each directors of PSP, and Mr. Vaudry is a director and the chief executive officer of PSP. The Company determined to satisfy the indebtedness through the issuance of shares in order to preserve a total of $102,500 in cash to be used for operations and working capital purposes.
The share issuance is conditional upon acceptance by the TSX Venture Exchange, and the common shares will be subject to a four month hold period from the date of issuance.
About PSP: The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely(R). 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(R) 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 including, without limitation, PSP's description and projections regarding its business and the industry in which it operates. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Although the Company believes that the expectations conveyed by the forward-looking information are reasonable based on information currently available to it, these statements are based on management's expectations, estimates and projections and involve a number of risks, uncertainties and assumptions, both known and unknown. As a result, the results or events depicted in these forward-looking statements may differ materially from actual results or events. Many factors could cause results to differ materially from those stated including, but not limited to the impact of price and product competition, changes in general industry and market conditions, inability to successfully plan and execute cost reduction and business improvement strategies, ability to retain key staff, restrictions and covenants contained in credit agreements, fluctuations in currency, exchange and interest rates and commodity prices, ability to retain existing customer contracts, reliance on key customers, inability to identify and execute on value-enhancing strategic alternatives, as well as various other factors which are discussed in the Company's filings with applicable securities regulatory authorities at www.sedar.com. 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.
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Pacific Safety Products Inc.