ARNPRIOR, ONTARIO--(Marketwired - June 3, 2013) - Pacific Safety Products Inc. ("PSP" or the "Company") (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour and personal protection solutions, announces that on or about April 24, 2013 it initiated formal arbitration proceedings in accordance with the terms of the lease of its Arnprior manufacturing facility against its landlord, Arnprior Bay Property Limited, a member of the Huntington Properties Ottawa Inc. group of companies led by Alan Whitten.
The subject matter of the arbitration is the quantum of additional rent payable under the lease over a period of several years. PSP maintains that it has been overcharged by the landlord. The value of PSP's claim is estimated to be $110,000 to $550,000, depending on the outcome of an ongoing review of financial records.
PSP initially contacted the landlord concerning such charges in October 2012, and has been met with numerous delays on the part of the landlord with respect to a potential negotiated settlement and document production necessary to evaluate and assess the extent of over-payments made by PSP. In November of 2012, PSP retained counsel to initiate and advance the arbitration proceeding. An Arbitrator was formally appointed on April 24, 2013. The date of the Arbitration hearing has yet to be set but will be held in Ottawa.
"It is unfortunate that this matter has progressed to the state where formal arbitration proceedings have become necessary," said Terry Vaudry, CEO of PSP. "We are hopeful that this matter can be resolved swiftly so that management can re-focus its attention exclusively on PSP's core business."
The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely®. PSP is an established industry leader in the production 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 including, without limitation, the estimated value of the Company's arbitration claim. Arbitration proceedings and the enforcement of contractual rights are complex legal matters, the outcome of which is uncertain and subject to a number of risks, legal interpretation and expenses. The Company's management has expressed forward-looking statements relating to the strength of its legal position based on financial records available to it as of the date hereof and its understanding of legal matters, in consultation with its legal counsel. 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.
For complete condensed consolidated interim financial statements with notes and management discussion and analysis, refer to SEDAR (www.sedar.com).