Market Update on US$54 M C&W Murphy contract
Armor Designs Inc. ("ADI"), (AIM: ADID, ADIS), the knowledge-based designer, developer and manufacturer of next generation composite protective products, in the fields of oil & natural gas, infrastructure, aerospace, sports, nuclear, and personal protection, announces the following market update on the status of the US$54 million, 3-year purchase order agreement, between Armor Designs, LLC ("ADLLC") and C&W Murphy and Associates ("C&W") to produce protective material designs for national and international distribution (the "Agreement"). Under the terms of the Agreement, announced on 21 February 2012, ADLLC is manufacturing a fixed quantity of body armor sets, on a fixed schedule, over a 36 month period.
The delivery schedule for the Agreement has been extended, owing to a temporary delay in the contract deliverables and additional live-fire testing required by C&W, on the most recent shipment. C&W have confirmed the Agreement remains in force, for the full 3-years, but ADLLC expects a forthcoming contract modification to reflect the new deliverable schedule. ADI will update the market when this information is known.
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ADI is also pleased to announce that the results of the live-fire testing, performed at H.P. White on behalf of ADLLC, demonstrated that the armor manufactured at ADLLC met and exceeded the ballistic specifications of the C&W contract. In addition, ADI also announces that C&W have confirmed that they conducted third-party testing of the ADLLC armor, independent of H.P. White, and these test results also demonstrated that the ADLLC armor met and exceeded the ballistic specifications of the C&W contract.
Finally, further to the announcements of 29 June 2012 and 21 September 2012, ADI announced to the market that in the event of any disruption of the advancements due under the C&W contract, ADI would consider undertaking a working capital equity raise. The Company highlights to investors that, on 25 April 2013, ADI announced it had closed an US$1.1 million dollar working capital equity raise.
Source : Armor Designs Inc.