Security Devices closes key $1.27 million financing to prepare for launch of its prized new personal security device

Defense technology company Security Devices International Inc (CSE:SDZ, OTCQB:SDEV) announced Tuesday that it had completed the issuance of convertible notes and warrants to raise $1,275,000.

The Wakefield, Massachusetts-based company specializes in less-lethal weapons which minimize the risk of the loss of life and serious injury.

The company said the net proceeds would be funneled into the launch of the company’s new product called the Byrna HD Personal Security Device and the media campaign to promote it.

The Byrna HD is a disruptive new non-lethal device aimed at the home defense and personal security markets. The Byrna HD’s small size which is akin to popular lethal handguns makes it easy to carry and effective in deterring or stopping an intruder. The $300 price point should also be attractive to homeowners who want protection, but either don’t want the hassle of obtaining a gun license or don’t want the risk of having a handgun at home.

“Closing the financing gives the company the capital required to launch our much-awaited Byrna HD Personal Security Device,” said Security Devices CEO Paul Jensen.

Jensen said there was strong demand for the HD Personal Security Device and it had already received large pre-orders for it.

“The company has taken a pre-order in the thousands of units for delivery in December and intends to start shipping the Byrna to consumers in January 2019,” said Jensen.

The notes and warrants were sold at a price of $1,000 per unit. Each unit will consist of one $1,000 debenture of the company and 4,000 warrants to purchase company stock at $0.25 per share. The term of the notes is 18 months, and the interest rate is 10% per annum.

Each warrant is exercisable for one common share of Security Devices during the 60 months following the closing of the private placement at an exercise price of $0.25. If the closing price of the shares is over $0.35 per share for a period of 20 consecutive trading days ending more than two years after the closing of the offering, the company may give written notice to the registered holders of the warrants accelerating the expiry date of the warrants to a date not less than 30 days following the date of that notice.

The company said any principal amount of the note plus any accrued interest can be convertible at the option of the holders into common shares at any time after the closing date at a rate of 6,666.67 common shares per $1,000, or an implied conversion price of $0.15 per common share.

The company specializes in the development, manufacture and sale of 40mm less-lethal ammunition.

The company offers a blunt impact projectile 40mm line of products that use pain compliance to control a target; and a line of 12-gauge, less-lethal projectiles and irritants. Clients include the military, correctional services and police agencies. Military organizations around the world have begun using less-lethal weapons for domestic crowd control, as well as in the assistance and support of developing nation states.

Contact Uttara Choudhury at [email protected]

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Story by ProactiveInvestors