VANCOUVER, BC–(Marketwired – September 05, 2017) – Mission Ready Services Inc. (“Mission Ready” or the “Company“) (TSX VENTURE: MRS) reports that, after an extensive evaluation of the costs and benefits of its acquisition of Wild Things, LLC (“Wild Things”), conducted over the past five months through cooperative efforts with the Wild Things team, the Company has chosen not to proceed with the transaction.
Mission Ready has concluded that the near-term growth prospects of certain well-advanced, unrelated manufacturing and sales opportunities outweigh the value to the shareholders of the Wild Things acquisition. In addition, management believes it to be in the best interest of its shareholders to effectively remove USD$4.15MM — approximately CAD$5.4MM — in debt from the Mission Ready balance sheet and to focus Company resources on its rapidly expanding product development and manufacturing business while growing its national and international client network.
Jeffery Schwartz, President & CEO of Mission Ready states, “On behalf of all of us at Mission Ready, we express our sincere appreciation to the Wild Things team for their hard work and dedication and we wish them all the best going forward. We are firm advocates of the Wild Things brand and would welcome the opportunity to maintain a close working relationship with the Wild Things team and continue to manufacture Wild Things products as required.” Mr. Schwartz also states, “We would also be open to exploring a future arrangement with Wild Things on terms that are deemed to be accretive to the Company and in the best interest of the Mission Ready shareholders.”
Pursuant to the terms of the Wild Things Asset Purchase Agreement, the Company is obligated to pay a Break Fee of USD$200,000 — of which USD$100,000 has already been paid — and return the shares of the Company’s Wild Things USA Inc. subsidiary to the shareholders of Wild Things, LLC.
Further to the additional time and resources afforded to the Company, the decision to cancel the Wild Things acquisition will also have an impact on the Company’s financial statements that, management believes, will better position the Company for the procurement of growth capital.
Effect on Mission Ready’s Balance Sheet ¹ (at June 30, 2017)
- Elimination of Notes Payable and Current Liabilities totaling $6.6MM
- Reduction of $2.77MM of Intangible Assets, $2.59MM of Inventory and $0.65MM of Accounts Receivable
Effect on Mission Ready’s Income Statement (for the 6-months ended June 30, 2017) ¹
- Reduction of $1.0MM offset by a reduction in Total Expenses of $1.5MM
- Net Operating Loss for the period reduced by $0.48MM
The Company is negotiating agreements for large foreign military opportunities — expected to be completed shortly — where Company resources that were previously dedicated to the Wild Things business will be immediately redirected.
¹ Amounts are approximate and in CAD currency using a USD-CAD conversion rate of 1.33.
About Mission Ready Services Inc.
Mission Ready serves to save lives and enhance the performance of military personnel, first responders, and those who protect us by working to ensure they are equipped with the best possible personal protective equipment.
Headquartered in Vancouver, BC, Mission Ready has three distinct, synergistic operating divisions:
- Innovations and Development of Personal Protective Equipment
- Manufacturing of Leading Military & Law Enforcement Personal Protective Equipment
- Cleaning, Decontamination & Repair of Personal Protective Equipment
Mission Ready’s management team offers over 100 years of combined industry experience and is composed of industry experts in developing products, contracting, and selling to the federal government, first responders and tactical markets through open market procurements, teaming arrangements, and a variety of federal contract tools.
Mission Ready Services Inc.
(signed “Jeff Schwartz”)
President & CEO
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”, “could”, “might”, “should” or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by Mission Ready Services Inc. as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Mission Ready Services Inc. to be materially different from those expressed or implied by such forward-looking information.
Forward-looking statements are based on assumptions management believes to be reasonable. Although Mission Ready Services Inc. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Mission Ready Services Inc. does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Director, Corporate Communications