Thursday, October 1st, 2020
Mace Security International, Inc.
4400 Carnegie
Cleveland, OH 44103

Mace Satisfies Revolving Credit Facility Amidst Continued Growth in Orders

MACE: TCF Bank Loan Pay-off Announcement

October 1, 2020

Mace Satisfies Revolving Credit Facility Amidst Continued Growth in Orders

Cleveland, Ohio, October 1, 2020 – Mace Security International, Inc. (OTCQX: MACE) (the “Company”) advises that it has paid the full balance of $600K of its commercial revolving credit facility (the “Loan”) from TCF National Bank, successor-by-merger to Chemical Bank (the “Bank”). The company has sufficient cash balances to fulfil its other current debt obligations and working capital needs.

With the payment of the loan, the Company’s balance sheet has few debt obligations. The remaining debt is related to a Paycheck Protection Program (PPP) stimulus loan received in the second quarter of 2020 and a seller’s note. The Company anticipates most of the PPP loan to be forgiven. Beyond the PPP loan, Mace has little debt and modest periodic payment obligations that can be met by ongoing cash flows from operations.

President and CEO Gary Medved commented: “It can be challenging to be presented with short notice to fulfill the terms of a financial obligation, especially in today’s economic climate. Nevertheless, Mace has fulfilled its obligation. We have shifted our focus to determining a new financing arrangement with a partner who wants to join Mace for its next stage of growth. It still remains a mystery why TCF National Bank called the loan.”

Executive Chairman Sanjay Singh commented: “We were more than surprised to learn that TCF was calling its loan with us given that the company’s market value has increased by $20MM in the last six months and the balance sheet continues to improve. The current assets have grown as has cash in the last six months. We are proud to be a small company that is enjoying substantial growth and doing its absolute best to meet its customers’ needs. The company’s mission is to empower those in a vulnerable situation, and we are deeply committed to that.”

The Company expects to secure a replacement revolving credit facility in the next ninety days to fund its working capital needs driven by double digit growth in the order backlog. Should the Company be unable to secure a replacement for working capital financing in the next six to twelve months, this could have a materially adverse effect on the Company’s ability to build inventory and further increase sales.

About Mace Security International, Inc.
Mace Security International Inc. is a globally recognized leader in personal safety products. Based in Cleveland, Ohio, the Company has spent more than 30 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand – the original trusted brand of pepper spray products. The Company’s other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand personal alarms. The Company also offers aerosol defense sprays for law enforcement and security professionals worldwide through its Take Down® Brand.

Mace Security International distributes and supports its products and services through mass-market retailers, wholesale distributors, independent dealers, e-commerce channels and through its website, www.Mace.com. For more information, please visit www.mace.com.

Forward-Looking Statements
Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “projected,” “intend to” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.