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.
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.
Date: Jun 4, 2013