In a press release issued earlier this week, Pacific Safety Products and Revision announced they have agreed to terminate the arrangement agreement made last month wherein Revision would pay Cdn $0.18 per share for PSP stock. PSP was unable to garner sufficient support among its shareholders to ratify the sale. PSP will reimburse Revision for $150,000 in transaction costs.
However, PSP has announced the sale of its headborne system assets to Revision for $1,275,000. Mr. David Scott, Chief Executive Officer of PSP stated: “The headborne program was established by PSP to develop new protection products for future market opportunities. To date the Company has made advances in the development of products; however, significant further investment is required in order to capitalize on these anticipated market opportunities. Given the state of the industry and the current economic conditions, the Company simply does not have the capital required to continue its headborne R&D program and Revision’s offer provides the Company with the opportunity to monetize this asset.” One example of the technologies developed by PSP is the Tactical Impact Protection System. Their headborne systems division is the crown jewel of PSP and will be a perfect addition to Revision which began their own headborne work over a year ago.
Tags: Pacific Safety Products, Revision