VANCOUVER, British Columbia, May 06, 2019 (GLOBE NEWSWIRE) -- Mission Ready Solutions Inc. (“Mission Ready” or the “Company”) (TSXV: MRS) is pleased to announce that it has received – through its wholly-owned subsidiary, Unifire, Inc. (“Unifire”) – USD$7MM in new orders since April 1, 2019. The Company also wishes to provide guidance and insights into its post-acquisition strategic plans to grow the Company and create shareholder value.
Unifire Acquisition Recap
On July 31, 2018, Mission Ready announced its intention to acquire 100% of the Unifire business (the “Acquisition”) and concurrently announced that it had received a term sheet for a USD$20MM revolving supplier credit facility (the “Credit Facility”). On April 23, 2019, the Company announced that it had finalized the Acquisition and secured the Credit Facility following extensive due diligence and integration efforts as referenced in intermediate news releases dated August 7, 2018, November 9, 2018, December 6, 2018, February 12, 2019, and March 8, 2019.
During the Acquisition process, on March 7, 2019, Unifire was awarded a bridge contract (the “SOE Bridge”) with the Defense Logistics Agency (“DLA”) to extend its current Tailored Logistics Services (“TLS”) Special Operations Equipment (“SOE”) contract for an additional year with the new expiration date being March 6, 2020. The SOE Bridge Contract – carrying a maximum dollar value of USD$4 billion – was awarded to the six incumbent TLS SOE contract holders, including Unifire, and continues coverage of the full line of SOE and incidental services under the DLA Troop Support SOE TLS program. Additional information on the SOE Bridge Contract can be viewed at the following link:
https://dod.defense.gov/News/Contracts/Contract-View/Article/1779133/
Post-Merger Plans and Operations
From June 1 – September 30, the peak period leading up to the Government year-end, Mission Ready will utilize all available resources, leveraging the expanded response capacity of the combined teams and the Company’s capital resources, to maximize the contract awards it receives on the SOE Bridge and other contracts in which Unifire participates.
During the acquisition process, Mission Ready management identified a number of opportunities to reduce Unifire’s overhead and increase efficiency through the automation of previously time-consuming processes, and the immediate implementation of a leading Customer-relationship Management (CRM) solution with integrated Enterprise resource planning (ERP) functionality. The Mission Ready team has begun the implementation and integration processes and are working diligently to put these systems in place without interrupting the Company’s readiness to respond to solicitations and fulfill contract awards.
Management
Unifire’s current leadership will be integrated into the Company’s existing management structure and will be joined by additional senior-level personnel and multiple US-based outside sale representatives to be engaged in 2019.
“I am thrilled to now be a part of the Mission Ready group of companies and am excited for the tremendous and sustainable opportunities for growth created by the combination of the two companies,” states Dan Raczykowski, Chief Operating Officer of Unifire. “I am proud of what we have been able to build since Unifire was started over 30 years ago and look forward to building on the Unifire legacy, reaching new heights and, in turn, creating shareholder value.”
Jeffery Schwartz, President & CEO of Mission Ready states, “This Acquisition is transformative for Mission Ready and delineates the Company as not only an experienced manufacturer and distributor but also a seasoned government contractor with invaluable industry relationships forged over the past 30 years. We would like to extend our sincere appreciation to all involved in the successful completion of the Acquisition and to the many patient shareholders who have stood by us throughout the process. We would also like to recognize Darrell Siria and Dan Raczykowski – Unifire’s former principals – for their confidence in Mission Ready to move their vision forward. Both Darrell and Dan have truly demonstrated their commitment and belief in the prosperous future of the Company in many ways, one of which being their consent to the incremental escrowed release of the equity portion of the consideration payable to each of them by Mission Ready.”
TLS Contract FAQ Recap | Mission Ready’s Strategic Advantage
Who is the Defense Logistics Agency?
The Defense Logistics Agency is a combat support agency in the United States Department of Defense with more than 26,000 civilian and military personnel throughout the world.
What are TLS programs?
DLA TLS programs – administered by DLA Troop Support – provide authorized Department of Defense, Federal Government and other government customers with streamlined procurement solutions via a standing contract with six approved commercial vendors. Unifire is one of the six approved vendors.
There are two major TLS contracts issued by the DLA Troop Support – Construction & Equipment office that are set aside for small business; Special Operations Equipment and Fire & Emergency Services Equipment. The SOE and FESE TLS programs enable customers to order commercial, off-the-shelf part numbered items within the scope of the program.
What does the finalized acquisition of Unifire mean for Mission Ready?
- Improved cash flow
- Immediate access to highly valuable distribution channels for its tech-centric product portfolio
- Goodwill value from 30 years of contract past-performance
- Addition of skilled and experienced personnel with well-established relationships with key decisions makers in the defense industry
How will the merger of Unifire into Mission Ready help to grow the Unifire business?
Historically, as one of six authorized TLS contract holders, Unifire has been limited in its ability to secure the initial capital required to facilitate many of the larger solicitations. Mission Ready has identified sources of capital that will enable Unifire to pursue TLS solicitation opportunities on a much larger scale than they have been able to at any point in their 30-year history, thereby creating immediate and significant growth potential.
During the acquisition process, Mission Ready identified an opportunity for considerable and rapid grow of the Unifire business which was restrained by limited access to capital. Unifire’s solicitation readiness has typically been limited to aggregate outstanding bids not exceeding, on average, approximately USD$2MM per month. Mission Ready’s access to scalable operating lines – with an immediate availability of minimum USD$20MM – will allow the Company to capture business that would not otherwise have been possible.
Investor Relations and Communications
Since July of 2018, the Company has focused all necessary resources on completing the Unifire transaction, raising vital capital, securing credit, and satisfying regulatory requirements. “We thank our shareholders for their continued support during this critical transformational period and wish to affirm our commitment to communication and transparency,” states Jeffery Schwartz. “With the Acquisition of Unifire complete, we anticipate a greater frequency of operational developments and, as such, intend to increase investor awareness and communications to include updated investor resources, the launch of a new and improved corporate website, ongoing company updates, engagement with research analysts and relevant funds, and other investor relations initiatives that will support the growth and development of Mission Ready as a public company.”
About Capstone Capital Group, LLC
Headquartered in New York City, Capstone is a private finance company focused on accelerating client cash flow and specializes in Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash.
With more than 100 years of combined business and investment expertise, Capstone’s mission is to provide vital capital resources, services and management to help expanding businesses achieve financial prosperity and peace of mind.
Specializing in Factoring and Trade and PO Financing, Capstone seeks to fund under-capitalized, competent businesses to sustain sales growth, preserve capital and ensure business goals are realized.
About Unifire, Inc.
Founded in 1987, Unifire is a specialized solutions provider to the US Defense Logistics Agency, and one of six companies worldwide that is authorized to provide equipment and designated services under the multi billion-dollar Tailored Logistics Support framework. Unifire is a Service-Disabled Veteran-Owned Small Business and an industry leading manufacturer and distributor of over 1.5 million fire, military, emergency, and law enforcement products. As an incumbent awardee of DLA’s Special Operations Equipment contract, with extensive knowledge and experience in providing solutions to the US Federal Government, Unifire utilizes its highly-efficient and scalable technology infrastructure to provide procurement solutions for program managers, military and federal contracting offices, base supply centers, and other governmental supply agencies.
About Mission Ready Solutions Inc.
Mission Ready innovates and manufactures leading tech-centric defense and tactical solutions to prevent injuries and enhance the performance of military personnel, first-responders and all those who protect us by equipping them with the next generation of personal protective technologies.
Mission Ready is committed to becoming a global leader in personal protective technologies through the strategic growth of its three synergistic business segments; Innovations & Development, Prototyping & Manufacturing, and Product Sales.
Mission Ready trades on the TSX Venture Exchange under the symbol MRS.
For further information, visit MRSCorp.com or contact:
Investor Relations
T: 1.877.479.7778 – Ext 500
E: IR@MRSCorp.com
Mission Ready Solutions Inc.
(signed “Jeffery L. Schwartz”)
Jeffery L. 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 Solutions 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 Solutions 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 Solutions 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 Solutions 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.