VANCOUVER, BRITISH COLUMBIA – (SEPTEMBER 6, 2017) – Mission Ready Services Inc. (“Mission Ready” or the “Company” or the “Manufacturer”) (TSX VENTURE:MRS) announces that it has signed a 5-year, multi-million dollar exclusive distribution agreement (the “Agreement”) with a US-based contracting partner (the “Distributor”) to manufacture and supply Flex9Armor and No-Contact Tactical Shield Covers – among other Protect The Force (“PTF”) products – for a large foreign military.
The Agreement includes annual minimum purchase volumes – USD$50MM for 2017 through December 31, 2018 – which must be met in order for certain Distributor provisions to remain in effect, including regional exclusivity and an automatic renewal of the contract in 2022 for an additional 5-year term.
Material Terms of the Agreement include:
- Minimum Purchases (USD): Year 1 (2018), $50MM; Year 2 (2019), $50MM; Year 3 (2020), $100MM; Year 4 (2021), $100MM; Year 5 (2022), $100MM.
- Advance Payments: Distributor agrees to pay Mission Ready (the “Manufacturer”) a down payment equal to forty percent (40%) of the purchase order amount within 10-days of submitting the purchase order.
- Exclusivity: Manufacturer appoints Distributor, on an exclusive basis, as its sole distributor for the defined territory.
Pursuant to the terms of the Agreement, the Distributor shall purchase a sufficient amount of products from Manufacturer so as to meet or exceed the minimum purchase requirements set forth above; provided, however, that purchases of products in excess of the minimum purchase requirement for any period shall be credited towards the minimum purchase requirements for subsequent periods. For the purposes of this provision, a “purchase” of products within a specified time period shall mean paying Manufacturer for such products on or before the last day of such period. Failure to meet such minimum requirements shall constitute a material breach of the Agreement provided, however, that in lieu of terminating the Agreement, Manufacturer may instead elect in its sole discretion to change the exclusive rights granted to Distributor for its defined territory.
MediaTech Capital Partner’s Porter Bibb, who recently partnered with Mission Ready (see Company’s news release dated August 2, 2017), states, “Mission Ready’s impressive new management team has delivered on its promise to put Mission Ready on a fast track to rapid growth and significant profitability as a market leader in the burgeoning military and public safety tactical equipment sector.” MediaTech will assist the Company with obtaining bridge loan capital for raw materials, as required, and will help to facilitate the rapid expansion of the Company’s manufacturing and sales divisions.
This distribution agreement is the first of several additional developing national and international opportunities in the Company’s growing sales backlog. With strengthening sales to U.S. military and law enforcement agencies, Mission Ready has begun to develop an aggressive global marketing initiative to extend its sales pipeline into other sovereign nations.
“The excitement that is building around the PTF product line is proof positive of the global appeal of Mission Ready’s innovative technology and cost-efficient products including its Flex9Armor and No-Contact Tactical Shield technologies, both designed to save lives and provide users with a unique protection in crowd control and other close quarter situations,” states Jeffery Schwartz, President & CEO of Mission Ready.
Schwartz continued, “Mission Ready’s expertise in intelligent textiles and defense-related technologies is a prime reason this distributor has chosen our patented, proprietary products which have been designed to meet the growing demand for maximum reliability and affordable protection for both military and law enforcement applications. We are positioning ourselves as a global market leader and expect to grow organically and through acquisitions since the tactical equipment market is a very fragmented, cottage industry ripe for consolidation.”
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.
Terry Nixon – Director, Corporate Communications
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.