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Tactical Products Group Executives Indicted by Department of Justice for Providing Faulty Armor, Swapping Tags

Wednesday, September 12th, 2018

Last week, Tactical Products Group, LLC (TPG) CEO Dan Thomas Lounsbury, Jr and Vice President for Sales and Federal Contracting Andres Lopez-Munoz, were in Federal Court in the Eastern District of Virginia due to charges of conspiracy to defraud the government with respect to claims and wire fraud. Lounsbury is additionally charged with false, fictitious, or fraudulent claims.

TPG is a Florida-based manufacturer and re-seller of various products to military, law enforcement, and private security clients. According to the United States Attorney’s Office, in 2012, TPG was selected as a sub-contractor on a contract to provide certain goods, including ten sets of hard body armor plates, to the United States government. The government had requested a specific type of plate, and Lounsbury and Lopez-Munoz both knew that no substitutions were allowed. Furthermore, Lounsbury and Lopez-Munoz both knew that these plates would be used to protect government personnel. The consequence of a failure of body armor is death or serious bodily injury. Nevertheless, Lounsbury and Lopez-Munoz worked together to procure cheaper substitute plates, and then to put fraudulent labels on these substitute plates falsely stating that they were the type of plates that the government had required. Some of these cheaper substitute plates were far outside their warranty period, and were not as protective as the false labels claimed.

The supplied plates were provided to Triple Canopy to fulfill a contract. Reportedly, the plates supplied were known to delaminate. Furthermore, four of the 10 plates supplied were six years out of warranty. Amazingly, the value of the contract is said to be just $3,500.

If convicted, they face a maximum penalty of 20 years in prison.

Ballard Signs Agreement to Divest Non-Core Power Manager Business

Saturday, September 1st, 2018

VANCOUVER, BC, CANADA and SOUTHBOROUGH, MA, USA – Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) today announced that it has entered into a definitive agreement to divest certain non-core assets of its subsidiary, Protonex, related to the Power Manager business to Revision Military Ltd.), a private U.S.-based company, for up to $16.0 million in cash. Ballard will retain certain assets related to fuel cell propulsion systems for military and commercial unmanned vehicles.

Terms of the transaction include upfront consideration of $4.75 million to Ballard, subject to a customary working capital adjustment, and up to a further $11.25 million, based on achievement of specific sales objectives during a 12-month earn-out period. The transaction is expected to close within the next 60 days, subject to customary closing conditions.

Randy MacEwen, Ballard President and CEO said, “This divestiture is consistent with our strategy of continuous portfolio optimization. We decided to divest Protonex assets that are no longer aligned with Ballard’s strategic fuel cell focus, while retaining assets related to the unmanned vehicle market, under the Ballard brand. The divestiture reduces complexity while allowing us to further invest in our core fuel cell business.”

Mr. MacEwen continued, “We originally acquired Protonex to provide strategic diversification and to engage the U.S. military complex as a potential customer for portable fuel cell products. With the developing value proposition and attractive market opportunities for fuel cell electric vehicles or FCEVs in Heavy- and Medium-Duty Motive markets, including bus, truck, rail, marine and other applications, we are divesting the Power Manager business to focus on core fuel cell market opportunities. The Power Manager business is a good long-term business that better complements the Revision strategy.”

Jonathan Blanshay, CEO of Revision Military Ltd. commented, “Revision is in the business of developing and supplying leading-edge protective equipment, along with innovations in power management and integrated systems, for mission critical military and tactical use. We are confident that our corporate platform, along with planned increases in U.S. defense spending and achievement of Milestone C, create a compelling growth opportunity for the Protonex Power Manager business.”

In 2015 Ballard paid approximately $17.5 million in shares and cash to acquire Protonex, which included the Power Manager business, a Solid Oxide Fuel Cells business which was divested in January 2018, and the unmanned vehicle business.

For additional information regarding unmanned vehicles, please visit www.ballard.com/markets/uav.

5.11 Names Francisco Morales As CEO

Wednesday, August 29th, 2018

Earlier this week, 5.11 Tactical’s longtime CEO, Tom Davin, stepped down from his position to assume an advisory role. I’ve known former Marine Recon Officer Tom Davin since he came to 5.11 in 2010 after propelling Panda Express to a billion Dollar enterprise. He’s a great guy who will continue to serve 5.11 in advisory role.

In his place, they’ve named Francisco Morales, who cofounded the brand with Dan Costa, back in 2003. Although Compass Diversified Holdings purchased 5.11 in 2016, Morales has continued to serve as President. He’ll be right at home in his new role as CEO.

5.11 also named Matt Hyde as Executive Chairman. Previously, Hyde served as CEO of Western Marine.

Operating a 2A Business Online – Options

Wednesday, August 22nd, 2018

“My Facebook Page/Group was shut down.”

“My credit card processor shut me off.”

“Google won’t accept my AdWords budget.”

“Shopify modified their Acceptable Use Policy and turned off my website.”

All of these are common complaints we see online every day from businesses operating in and around the Shooting, Hunting, Outdoor, and Tactical (SHOT) market – particularly when there’s tools like firearms, knives, and accessories involved. What was once a wide open ‘Wild Wild West’ of the market, is now an increasingly controlled World Wide Web of regulations, rules, and policies. Not many of which are designed to support the SHOT market. Most of them are designed to mitigate liability and risk for the partners and vendors involved. And now that risk mitigation is being wielded to target the SHOT Market.

Shopify’s Acceptable Use Policy (AUP) update last week is not the first shot of the war. It is one more shot in another battle in a long series of battles. Since the beginning of commerce on the internet we’ve seen this. If it’s not the SHOT market, it’s drug-related content, 3D CAD files (Defense Distributed), the adult industry (watch the movie ‘Middle Men’), and a myriad of other targets.

Doing business online in the SHOT is achievable, but owners/operators need to be realistic and take an approach to mitigate our risk. In the chain of vendors and service providers needed to successfully operate a 2A business, all of them carry inherent risk. Hosts, credit card processors, software licenses, service providers: all of them can change their policy at any time and have a negative effect on your ability to do online business. These policy changes may not be because they dislike us, our products, or our customers. Rather, it may be a requirement of their financial institutions – banks, lenders, processors, investors, their insurance providers – many of whom dislike the inherent risk associated with commerce in 2A, or their leadership or board members – some of whom may push personal agendas in the course of their role, amongst many other factors.

For that reason, it’s important to have these conversations with our providers. Be upfront about our business with our online resources. Let them know what our businesses do, with whom, and what steps we’ve taken to mitigate their risk (your resources, your customers), and our risk – as a business owner/operator. And, ask them the tough questions: “Do you support my business – the legal sale of products in the 2A space?” If the answer is no – move on. If the answer is yes, ask them how they plan to deal with external pressure to exit the space. Ask them how they plan to notify us in the event they are ‘required’ to change their policies/terms that may negatively affect our business’ ability to conduct commerce online.

These questions and relationships can happen at many different levels in the spectrum of online business, depending on our approach to doing SHOT business online. For most of our businesses, this falls into one of three solutions:

Full Custom Development

Working with your team and that of a developer, payment and processor solutions, hosting, homegrown or licensed cart and other software, and likely a suite of marketing and management tools. This option provides the most flexibility for a SHOT business that has the business to support the diverse group of resources required to make it work.

Full Custom is often the most expensive and time intensive but allows for an environment where overall risk is greatly reduced by spreading it across multiple vendors and resources: if one fails, it can often be replaced with another that supports our industry. Solutions like this are perfect for companies looking to both mitigate risk, as well as having a diverse set of business rules and requirements.

Hosted Solutions

Yes: there are hosted solutions alternatives to Shopify that ARE SHOT and 2A friendly, including huge companies with stronger platforms and capabilities than Shopify has ever had. These SaaS (Software as a Service) companies provide nearly a one-stop-shop environment: pay the fee, plug-in your products, start doing business. Yes, that’s a generalization, but time-to-commerce is reduced significantly working with one of these providers.

With Hosted Solutions we operate in their environment, they maintain the hosting, software, and vendors required for us to do business. Using their services or outside resources, you skin the look and feel of the site and add your content and you’re off! From a risk perspective, like Shopify, some of these services can be an all-or-nothing endeavor: if they change a policy your business could be shut down.

It’s imperative, therefore, to have the discussion about policy changes up front with a Hosted Solution provider – will they work with you in the event of a policy change? Can they or will they explore other resource options to support you if, for example, their credit card processor was the weak link and opted out of 2A business? Again – there are some fantastic options out there but approach any relationship with a Hosted Solution provider with your eyes wide open and have a plan for contingencies. These solutions are optimal for brands looking for near-turn-key ecommerce solutions, preferably for brands not selling firearms, weapons, or accessories – soft goods and non-gun parts are a good fit.

DIY Solutions

If you’re good with rolling up your sleeves and terms like ‘CSS’ and ‘API’ don’t scare you, then a DIY solution might be for you. Or, if you can figure out how to navigate some of the online basics of buying a domain, finding a host, and installing plugins, it’s not hard to roll-your-own with little to no help. There’s a number of free shopping carts available. Some requiring little configuration, the others a degree in computer sciences. Depending on your skill and risk level, these could be a good fit for you, but often would be better suited to engaging a developer for a custom project.

Other options may be simpler and easier. One of the most expedient methods is to use WordPress – a widely adopted blog software – in combination with a cart plugin. WordPress powers a claimed 31% of the internet – and it’s a believable claim: their software is everywhere. Over time, companies have built a significant number of plugins to extend the capability of WordPress, including shopping cart software. These shopping cart plugins are available as free, licensed, and hosted options – all ‘plugging into’ the WordPress environment to allow you to operate an online store. Using the easy WordPress interface and finding a place to host your website are relatively straightforward processes. Adding in payment processors, fulfillment providers and other plugins can be a bit trickier, but generally achievable for most.

Building one of these sites takes some time and it opens us to some risk: If your cart plugin is dependent on a specific payment gateway, or any other service/capability, plugin or extension and that provider changes their policy, your business could be at risk. Therefore, a shopping cart plugin with a wide array of options to fulfill these roles and needs is advisable and will help mitigate your risk. Additionally, there’s the possibility of WordPress changing their policies and terms, and though that could be difficult to enforce with the broad proliferation of their software, it could happen. These solutions may allow you to diversify risk across more components and may cost less than a full custom solution or hosted solution, but they add time and resource requirements.

There is a solution for everyone. The options above can and do work. We work with iterations of them every day. Because we, as an industry, are not done or going away. They can’t push us out or shut us down. Using one of the solutions above, or a combination of them, can help mitigate our risk. Having a plan, however, will help further reduce our risk and ensure we’re ready for contingencies. Managing our risk with a plan isn’t a suggestion, it’s a requirement for a smart business owner. They have and will continue to make it harder and more difficult for us. More policies will change, likely not in our favor. More providers will fail us. But we’ve got a plan.

By N Hoffman.

SIG SAUER and Aquaterro Announce Landmark Small Arms Agreement for Australia

Tuesday, August 21st, 2018

SIG SAUER, Inc. of Newington, NH, USA, and Aquaterro of Melbourne, VIC, Australia; have announced an agreement to manufacture, assemble, upgrade, and support of small arms platforms and capability systems for the duration of the Capability Life Cycle. This landmark agreement is a demonstration of commitment by both SIG SAUER and Aquaterro to the Australian Defence Force. For the first time, the Australian Defence Force will be able to access the best, modular, integrated firearms solutions quickly, delivering small arms overmatch to Australia’s future soldiers, sailors, and airmen.

SIG SAUER is synonymous with industry-leading quality and innovation which has made it the brand of choice amongst the U.S. Military, the global defense community, and law enforcement.

In 2017 SIG SAUER was chosen for the highly coveted U.S. Army’s Modular Handgun System with the P320-based M17. This contract, worth $580 million U.S. Dollars (AUD $800m) was awarded to the P320-M17 for its unrivaled modularity, unmatched capability, and indisputable quality, and cemented the P320-M17 into the historical record of the world’s most innovative firearms. In 2018 the P320 X-Carry was selected by the Danish Ministry of Defence as their standard service pistol covering the Army, Navy, Air Force, and Special Operations Command as it outperformed the competition throughout their rigorous and stringent testing process.

The SIG MCX and MPX rifle platforms are the most sought after, modular, close quarters/PDW and urban tactical rifles in the world today. In July 2018 the SIG MCX Virtus Rifle System was awarded the Suppressed Upper Receiver Group (SURG) award by the U.S. Department of Defense (DoD) for the existing M4A1 Carbine. The MCX SURG System will upgrade, and optimize military weapons for continuous, suppressed use on the battlefield. SIG SAUER is currently competing for the U.S. Army’s Next Generation Squad Automatic Rifle program that is intended to replace the M249 Minimi.

Aquaterro is the leading provider of operational, tactical, and safety equipment to government, military, and commercial end users in Australia and the Australasian Region. Aquaterro is a current contract holder and provider to Land 125 and Land 53 and the exclusive provider of systems and lifecycle support for SIG SAUER small arms integrated weapons to all Australian agencies.

The strategic partnership between SIG SAUER and Aquaterro will be further enhanced by Aquaterro’s new purpose-built facility (due to open in Q1 2019), and expanded highly-skilled workforce in South Eastern Melbourne. This expansion enables Aquaterro to offer turn-key, vertically integrated capability solutions for the Capability Streams sought by Land 159, Land 4108, and Land 1508, ensuring a qualitative edge to Australia’s warfighters.

Uinta Trading Co Is Calling All Brands And Affiliates To The Marketplace

Friday, August 17th, 2018

For Immediate Release – Salt Lake City – Online marketplace for the outdoorsman, Uinta Trading Co is calling for brands, craftsman, and individuals looking to sell their products to other freedom loving Americans. In conjunction with seller outreach, Uinta Trading is also looking to create partnerships with Affiliates that are established content creators within the outdoor space.

Uinta Trading Co is a veteran owned company that is focused on maintaining a simple and reliable place to buy and sell products that are relevant to quality minded outdoor enthusiasts. The marketplace is a platform where brands can sell any federally legal product without fear of being shut down or adversely affected by arbitrary rule changes or shifts in the political landscape.

Sellers on Uinta Trading Co have no enrollment fees, no monthly fees, and a flat 10% referral fee for orders generate on the marketplace. As a brand integrates into the marketplace, they manage their product pages and will have the option to fulfill their own orders or they can choose to have Uinta Trading inventory and fulfilled orders for them.

Sellers on Uinta Trading are part of a collaborative atmosphere of content creation, joint promotions, lead generation, and a powerful affiliate network.

Sellers can learn more and apply here: uinta.io/selling

Shopify Bans Firearms and Ammunition

Wednesday, August 15th, 2018

For those of you unfamiliar, Shopify is an online sales platform and many companies in the firearms business are built on it, using this licensed technology.

Earlier this week, Canada-based abandoned its pledge to remain apolitical and altered its Acceptable Use Policy to ban use of the software for the sale of firearms, accessories and ammunition. Unfortunately, for these Shopify customers, their very websites rely in this software. What’s more, Shopify hasn’t indicated how long those affected have to comply with the new policy before they “turn them off.”

I’d say it’s time for those affected to switch to an company which respects the rule of law and supports American businesses. As we learn more about this situation and identify platforms which support civil rights, we’ll update you.

The repercussions are wide spread. SSD Advertiser Franklin Armory sent us this press release:

Minden, NV, August 14, 2018– Reputable firearms manufacturer and industry innovator, Franklin Armory®, received word late Monday evening that their ecommerce provider, Shopify, will soon interrupt their lawful commerce of firearms and components due to a sudden change in Shopify’s “Acceptable Use Policy (AUP.)”  The new AUP was presented without warning and included a new definition of “Restricted Items” to include flash suppressors, threaded barrels, pistol grips, and even magazines larger than 10 rounds.  All of these items are legal to use in a majority of states across the country, yet Shopify is interfering with Franklin Armory®’s lawful interstate commerce.

Because of their lawful commerce in firearms, Franklin Armory® has previously been discriminated against by financial services companies such as Wells Fargo, Bank of America, Citigroup, First Data, Intuit, and Pay Pal.  Social media companies such as Facebook, Google, Youtube, and Twitter have also operated under discriminatory policies to throttle down the reach of firearms manufacturers.

Counsel for Franklin Armory®, Jason Davis, stated, “The firearms industry is under an unprecedented attack from the leading facilitators of interstate commerce that deny legitimate firearm businesses access to important structural supports of modern business.”

Jay Jacobson, President of Franklin Armory®, went on to say, “History is replete with examples of discriminatory practices employed against various societal segments.  In almost every case, our nation has legislated equal protection for those segments to prevent unfair practices and discrimination.  If Congress does not act soon to provide equal protection to all businesses, it is not too much of a leap to see how only approved businesses or people will be able to buy or sell in future financial markets.”

If you would like more information about this topic, please see our website at www.franklinarmory.com.

“This is definitely an attack on our rights and our businesses,” states Nick Hoffman of Tactical Development Group. “For years we’ve fought a losing battle where technology and service providers have created or caved to anti-2A policies. We see it in payment providers and gateways, software licenses, and so-called ‘acceptable use policies’ across the technology space needed to do business online. There is hope, however. We’ve found and use several providers willing to pledge their support to our industry and provide the services we need to create successful online businesses, despite the rhetoric of their peers.”

Where Hoffman used to recommend Shopify and their ‘apolitical AUP’, he now recommends a different solution. “Building our businesses on someone else’s platform leaves us vulnerable – we have too many eggs in one basket and a strategic policy change from a vendor can blindside and cripple us. It’s incumbent of us to be aware of this as we build brands across social media and services where the deck is stacked against us – they don’t want our money or liability. Case in point: pro-2A brands like Black Rifle Coffee Co., Grunt Style, and many others, companies that were also blindsided, operate on and represent substantial revenue to Shopify. Whether Shopify considered the unintended consequences of losing business from brands outside the direct sale of firearms related products or not, it’s going to happen. Diversity in our approach to marketing, building, and facilitating our 2A brands is key to our success in combatting sweeping policy changes like this.”

Revision Holds Groundbreaking Ceremony For New Facility, Joined by New Hampshire US Senators

Monday, August 13th, 2018

Portsmouth, New Hampshire (August 13, 2018) – Today Revision Military—a world leader in tactical and military eyewear, helmet systems, power management solutions, and advanced integrated soldier systems—held a groundbreaking ceremony for a new facility located in Portsmouth, New Hampshire. Revision CEO Jonathan Blanshay was joined by U.S. Senator Jeanne Shaheen (D-NH) and U.S. Senator Maggie Hassan (D-NH). The new facility will be located on an eight acre lot on Corporate Drive at the Pease International Tradeport. This new Center of Excellence—the Revision Advanced Warfighter Equipment Development Center—will house a warfighter experience and development lab, including simulation capabilities; a rapid prototyping lab; an integrated soldier systems development lab and offices; and an armor prototyping and development facility.

“We are tremendously excited to commence this new venture in New Hampshire and honored to begin this next chapter with New Hampshire Senators Shaheen and Hassan,” said Jonathan Blanshay. “I would like to personally thank Senator Shaheen for her steadfast leadership on the Armed Services Committee and for her tireless work to bring advanced defense technologies to New Hampshire. I sincerely thank Senator Hassan for her guidance during her time as Governor, her continued support of our company in the Senate, and her stewardship with the New Hampshire Department of Resources and Economic Development and the University of New Hampshire during our site consideration. Both Senators have promoted legislative provisions that will directly impact the initial work Revision will undertake in the Granite State. We look forward to working together to create jobs and bring world-class development of our most advanced protective equipment and soldier systems to the Seacoast.”

“Revision’s expansion to New Hampshire helps fortify our state’s role as a supporter of critical national defense programs,” said Senator Jeanne Shaheen. “Their new facility at Pease International Tradeport will provide important job opportunities for our evolving workforce, preparing Granite Staters for jobs of the 21st century economy. I’m excited to see Revision join other defense companies in New Hampshire, helping to make our state a hub for technological innovation. As a member of the Senate Armed Services and Appropriations Committees, I will continue to advocate for their continued efforts that support our military readiness.”

“As Governor I was proud to work with Revision to show them all the great benefits of bringing their business to our state, and as Senator I am continuing to work to ensure that innovative businesses like Revision have the support they need to thrive in New Hampshire,” Senator Maggie Hassan said. “I am thrilled that Revision Military chose the Granite State for the future site of its Advanced Warfighter Equipment Development Center, which will play a critical role in supporting our brave law enforcement officers and service members who dedicate their lives to keeping us all safe.”

In May, Revision announced the company’s intentions to expand operations to New Hampshire and detailed the 5,000 square foot temporary office that has been established to facilitate this transition. This office space is located on International Drive in Pease International Tradeport, just a short distance from the future site, and hiring has already started – visit revisionmilitary.com/careers for open jobs in Portsmouth. By expanding to Portsmouth, Revision will improve access to its military customer base in the Greater Boston area, as well as along the eastern seaboard, and will be better positioned to work collaboratively with local academic institutions and a significant number of locally-based partners and suppliers. The Seacoast region is also home to a vibrant talent pool that will help propel Revision’s efforts to deliver best-in-class soldier system technology.

The Revision Advanced Warfighter Equipment Development Center will become Revision’s seventh facility, joining three locations in Vermont, two in Canada, and one in the United Kingdom. The work done in New Hampshire will also grow and sustain business in Revision’s other facilities, especially the two advanced manufacturing facilities in Vermont (optics in Essex Junction and helmets/armor in Newport). Construction of the 47,000 square foot facility (with room to expand an additional 55,000 square feet as required) is scheduled to begin in fall 2018. The anticipated completion date of the construction is mid-to-late 2019, at which point Revision plans to hire an additional 50 to 60 new employees to initiate operations at the new facility.

www.revisionmilitary.com