Pacific Safety Products Inc. Announces Termination of Letter of Intent With …


ARNPRIOR, ONTARIO, May 14, 2012 (MARKETWIRE via COMTEX) –
Pacific Safety Products Inc. (“PSP” or the “Company”) , announced today that the letter of intent with ArmorWorks
Enterprises LLC to acquire all of the issued and outstanding shares
of ArmorWorks Enterprises Canada, ULC in a reverse take-over
transaction (the “Transaction”) has been terminated. The letter of
intent was initially announced by PSP on April 18, 2012. Trading in
the shares of PSP was halted pending review by the TSX Venture
Exchange of the Transaction and is expected to resume shortly.

The board of directors of the Company has exercised its option to
terminate the Company’s contract with its Executive Chairman, Daniel
Marks, upon 30 days’ notice. The role of Interim Chairman will be
assumed immediately by independent director Fraser Campbell. Daniel
Marks resigned his position as a director of the Company effective
immediately. In addition, in order to create a separation between the
Chief Executive Officer and Chief Financial Officer roles, Douglas
Lucky remains the Chief Executive Officer of the Company and will
relinquish his position as Interim Chief Financial Officer. The
Company has appointed Sharon Johnston as Interim Chief Financial
Officer; Ms. Johnston has been the Director of Finance for the
Company since June, 2011.

The Company has been taking the necessary steps to align and size its
operations to current North American business opportunities and
expects these efforts to improve the financial outlook of PSP. The
Company also continues to consider and evaluate on an ongoing basis
all alternatives available to it in the course of realizing its
strategic direction. The Company expects that its financial
statements and MDA for the quarter ended March 31, 2012 will be
filed on SEDAR later this month.

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, with respect to the anticipated impact on the Company’s
financial outlook of the steps being taken to align and size its
operations to current North American business opportunities and the
Company’s consideration and evaluation of strategic alternatives. 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.



        
        Contacts:
        Douglas Lucky
        Chief Executive Officer
        Pacific Safety Products Inc.
        (613) 623-6001
 
www.pacsafety.com            
        
        


SOURCE: Pacific Safety Products Inc.


http://www.pacsafety.com

Copyright 2012 Marketwire, Inc., All rights reserved.

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