Mr. Bryan Ganz reports
SECURITY DEVICES INTERNATIONAL INC. (OTCQB: SDEV, CSE: SDZ) REPORTS RECORD QUARTER
Security Devices International Inc. just concluded its first full quarter (ended Aug. 31, 2019) of production and sales of its new consumer-focused personal security device, the Byrna HD.
For the quarter ended Aug. 31, 2019, the company produced 1,675 launchers, up from 204 launchers produced at the end of Q2. Production was moved from Visionware to Roboro Industries in mid-July, which has dramatically improved production numbers and significantly lowered rejection rates. While changing final assembly supplier mid-quarter was disruptive, it resulted in 1,327 launchers being produced following the change, with a dramatically lower rejection rate than before the move.
"We are very pleased with the Roboro relationship," commented Bryan Ganz, the chief executive officer of Security Devices. "They are just going to get better as their people gain more experience with our product." For Q4, Security Devices projects that production will exceed 4,000 units.
Preliminary sales for the third quarter totalled $309,150, up from $105,730 in Q2 and $11,146 in Q1. Ninety per cent of such sales came from sales of the Byrna HD and accessories, with the balance of sales attributed to Security Devices' line of 40-millimetre blunt impact projectiles. Of the $277,623 in Byrna sales, 81 per cent was for the launcher and 19 per cent came from sales of accessories and ammo. Security Devices expects the percentage of sales derived from accessories and ammo to increase as its customer base grows.
Sales for the third quarter were aided by a product review by Sootch00, a well-known gun reviewer with over 850,000 YouTube subscribers. The video, released on July 15, 2019, shows the incapacitating effects of the Byrna Black chemical irritant round.
In Q4, SDI will be the primary sponsor of the Rick Ware Racing No. 52 Byrna Ford Mustang, which will be racing in the Federated Auto Parts 400 Nascar Monster Energy cup series at the Richmond Raceway in Richmond, Va., on Sept. 21. In addition to the Richmond Race, Security Devices plans to attend a number of gun shows including the Rapid City Gun Show at the Rushmore Plaza Civic Center in Rapid City, S.D., on Sept. 21 and Sept. 22, the Gun & Knife Show at the Eastern States Exposition in West Springfield, Mass., on Oct. 26 and Oct. 27, the Wilmington Firearm & Knife Show at Shriners Auditorium in Wilmington, Mass., on Nov. 9 and Nov. 10, and the Muncie, Ind., Gun Show in Muncie, Ind., on Dec. 14 and Dec. 15.
Security Devices has entered into a new binding agreement with Roboro Industries Pty. Ltd. (which will be operating under the name Byrna Africa) to serve as its authorized manufacturer's distributor in South Africa. The company recently ended discussions of an exclusive distributorship with Dave Sheer Guns (DSG) and cancelled the balance of a purchase order which contemplated special pricing.
"We are excited to have this opportunity to expand our relationship with the Roboro group," commented Mr. Ganz. "They've done a great job of taking over our production and we think they will be as effective representing us in South Africa."
On July 22, 2019, Security Devices issued $2,282,500 worth of 10 per cent convertible notes due June 30, 2021. These notes are convertible into common stock in Security Devices at any time prior to their maturity on June 30, 2021. Each $1,000 note was issued with 4,000 warrants, each exercisable into one share of Security Devices common stock at 25 U.S. cents per share at any time prior to their expiration on Jan. 22, 2024. The company closed a second tranche of these notes on Sept. 16, 2019, raising another $817,500. As with the first tranche, Northeast Industrial Partners LLC will act as collateral agent for the purchasers of the notes. The net proceeds from the offering will be used for general corporate purposes and working capital.
About Security Devices International Inc.
Security Devices International is a technology company specializing in the areas of personal security devices, military, law enforcement, corrections and private security. The company develops and manufactures innovative, less lethal equipment and munitions.
About the Byrna HD personal security device
The Byrna HD is a disruptive new non-lethal device aimed at the home defence and personal security markets. Its small size (similar to popular lethal handguns on the market today), ease of obtaining, ease of carry, effectiveness in deterring or stopping an intruder, and accessible price point should be appealing to individuals who want protection, but either do not want the hassle of obtaining a gun licence or do not want the risk of having a hand gun in their home, as well as to gun enthusiasts who appreciate a precision piece of equipment and want something in their collection that is both effective and non-lethal.
The Byrna HD comes with multiple easily reloadable magazines that can hold five 0.68-calibre highly effective payload rounds designed to burn an assailant's eyes and respiratory system upon contact. The Byrna also comes with inert and impact rounds that can be used for training. Accurate up to 60 feet, the Byrna HD is fitted with a picatinny rail that allows owners to mount either a laser sight or flashlight making it easy for novices to fire it accurately. The Byrna HD provides homeowners, women, retirees and others whose work or daily activities may put them at risk of being a victim with easy access to an effective, non-lethal way to protect themselves and their loved ones from threats to their person or property. It also is ideal for boaters, truckers, RV owners, campers and gun enthusiasts around the world.
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