TORONTO, ONTARIO--(Marketwired - Aug 21, 2013) - Mr. Terry Vaudry, a director and officer of Pacific Safety Products Inc. (the "Company") (TSX VENTURE:PSP), has acquired from Stonehouse Capital Management Inc. on August 21, 2013, a total of 5,000,000 common shares of the Company (the "Acquired Shares") at a price of $0.05 per share, representing approximately 7.78% of the issued and outstanding common shares (the "Common Shares") of the Company (assuming no options or warrants of the Company are exercised).
Following the acquisition, Mr. Vaudry has beneficial ownership of, or the power to exercise control or direction over, the following securities of the Company: (i) 11,069,352 Common Shares; and (ii) 750,000 options (the "Vaudry Options") to purchase Common Shares at an exercise price of $0.10 per share. Assuming the exercise of the Vaudry Options, Mr. Vaudry would have beneficial ownership of, or the power to exercise control or direction over, an aggregate of 11,819,352 Common Shares, representing approximately 18.22% of the then issued and outstanding Common Shares (assuming no options or warrants are exercised other than the Vaudry Options). Of the securities described above, North American Logistics Inc. ("NAL"), a company wholly-owned by Mr. Vaudry, has beneficial ownership of 1,943,352 Common Shares (the "NAL Shares"). Vaudry has the power to exercise control or direction over the NAL Shares. On August 17, 2010, NAL was issued an aggregate principal amount of $250,000 of convertible debentures (the "Debentures"), convertible into Common Shares at an exercise price of $0.10 per share. The foregoing Debentures have been amended and restated, as described in the Company's press release dated August 19, 2013, whereby, inter alia, the conversion feature of the Debentures has been removed. NAL was issued 1,100,000 of the aggregate NAL Shares it currently holds as a bonus, in accordance with Policy 5-1 of the TSX Venture Exchange, in connection with the amendment and restatement of the Debentures.
The Acquired Shares were purchased through the facilities of the Alpha Exchange.
The Acquired Shares were acquired for investment purposes. Mr. Vaudry and/or North American Logistics Inc. may, depending on market and other conditions, increase or decrease their ownership of the Company's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. In addition, Mr. Vaudry is a director and officer of the Company, and may from time to time receive Common Shares in settlement of accrued compensation owing to him, consistent with past practice of the Company; however there is no agreement between Mr. Vaudry and the Company in respect thereof at this time.
An Early Warning Report in respect of the acquisition has been filed on SEDAR and can be viewed at www.sedar.com.
Neither the 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.