Security Devices International Rises Back Over IPO Price With Sales of Blunt Impact Projectiles

Security Devices International Rises Back Over IPO Price With Sales of Blunt Impact Projectiles

By: Tomas Ronolski - AllPennyStocks.com News

Wednesday, September 25, 2013

Police or correctional officers often face a daunting physical task in dealing with suspects or criminals as well as the mental challenge of determining what is the appropriate amount of force. Some tools of the trade have surfaced in recent times, such as tasers and rubber bullets, to provide some non-lethal alternatives to traditional weapons for police to take control and stabilize situations. The growing number of uses and widespread acceptance of less-lethal means has provided opportunities for investors in companies like Security Devices International Inc. (TSX-Venture:SDZ), a Washington, D.C.-based defense technology company specializing in next-generation non-lethal ammunition. This is a new issue with the company just completing its initial public offering to list on the Venture Exchange on August 28, raising total gross proceeds of $3.99 million through the issuance of 9,984,950 shares at 40 cents each. As part of serving as the agent, Macquarie Private Wealth Inc. has the option to purchase an additional 898,645 shares at 40 cents until August 27, 2015. Shares began trading on the Venture on September 4.


On that point, Security Devices has some cash in the bank and is generating sales to add to it. The company said that it intends to use a portion of the IPO proceeds to grow its sales team and for targeted marketing.

SDI’s patented Blunt Impact Projectile, or BIP, is in full production with the company building an inventory for the bullet that has demonstrated operational effectiveness from distances ranging from 9 feet to 260 feet. The BIP line includes six different versions, including those with marking agents, a malodorant liquid and even a wireless electric projectile called “Lektrox.”

The company has in place a five-year teaming agreement with an unnamed global defense technology company that should shepherd domestic and international expansion and sales. Dollar figures weren’t disclosed, but SDI announced two weeks ago that it completed a sales transaction for a “sizeable amount” of operation evaluation rounds to a Middle East military Company that had previously tested the projectiles. The recent order was to finalize the buyer’s supplier base with a larger order expected in coming months.

That news was followed on Wednesday with the announcement of sale of evaluation rounds to a U.S. Homeland Security agency that was set in motion after a live fire demonstration at the Texas Tactical Police Officers Trade Show. The ammo will be deployed into uniformed field units at the agency and used as required.

Further, SDI said that its BIP40 is now the BIP of choice at Florida’s Indian River County Sheriff's Office Correctional Institution.

"This entry by SDI into the field of Jails and Correctional Services, is just another example of our Companies widespread breadth into multiple markets. Along with our Military and Law Enforcement scope, we intend to exploit numerous opportunities within corrections and private security entities, as well," said Gregory Sullivan, president at Security Devices Intl.

Since going public a few weeks ago at 40 cents, shares rose as high as 44 cents before slipping to a low of 33 cents on the 16th. Since, shares are back on the climb, rising today back over the IPO price to 41 cents following the news, albeit on low volume of 18,000 shares changing hands.

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