ARNPRIOR, ONTARIO--(Marketwired - Aug. 19, 2013) - Pacific Safety Products Inc. (the "Company") (TSX VENTURE:PSP) announced today that it amended and restated certain unsecured convertible debentures (the "Original Debentures") that were issued on August 17, 2010 in the aggregate principal amount of $1,000,000. As part of the amendment and restatement, the Company repaid $200,000 principal amount of the Original Debentures plus accrued but unpaid interest. The remaining $800,000 aggregate principal amount of the Original Debentures (hereinafter referred to as the "Amended and Restated Debentures"), plus $40,000 of accrued and unpaid interest thereon, were amended and restated as follows: (i) the interest rate payable increased from 10% to 12%; (ii) the term was extended by 18 months and the new maturity date is February 17, 2015; (iii) the Amended and Restated Debentures will not be convertible into common shares of the Company (the "Common Shares"); and (iv) the Amended and Restated Debentures are secured by way of a general security agreement over all of the assets and property of the Company. Additionally, the Company issued a new secured debenture (together with the Amended and Restated Debentures, the "Debentures") in the principal amount of $50,000 on identical terms to the Amended and Restated Debentures.
In connection with the issuance of the Debentures, the Company issued to the lenders as a bonus an aggregate of 3,560,000 Common Shares (the "Bonus Shares") in accordance with Policy 5-1 of the TSX Venture Exchange (the "TSX-V"). The Bonus Shares will be subject to a four month and one day hold period from the date of issuance. The issuance of the Debentures and the Bonus Shares is subject to final approval of the TSX-V.
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.
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.