COVID-19 Update and Executive and Board Changes
April 7, 2020
Mace Security International, Inc. Announces Impact of COVID-19 on its Business, and Board of Directors and Executive Changes
CLEVELAND, Ohio – Mace Security International, Inc. (OTCQX: MACE or “the company”) today released information regarding the impact of the COVID-19 Health Emergency on its operations. It also is announcing unrelated executive and Board of Director’s changes.
Considering recent national developments MACE feels it is important to provide a timely update to its shareholders in advance of the availability of its formal Q1, 2020 report.
Regarding the impact of the COVID-19 virus, the company is continuing to provide its customers with important products to protect their personal safety during these difficult times. In the first several weeks of this economic disruption both online sales, as well as shipments to several retail accounts, have held up well and in some instances even shown some increase over the same period from the prior year. As might be expected, orders from some retailers which are impacted by forced closure have declined or stopped. While MACE is continuing production and has no current plans to discontinue production, there is no assurance that this will continue throughout or following the emergency.
Given the uncertainty of the extent and duration of the human and economic disruption affecting our customers caused by the COVID-19 health emergency, any attempt to predict future sales and earnings would be futile. At the present time, MACE does not believe the financial results of its quarter ended March 31, 2020 will be materially impacted by COVID-19 related factors.
The company is operating under Corona Virus Health Best Practice guidelines to protect its employees and is taking every opportunity to preserve cash and to further strengthen the balance sheet.
While the timing is unfortunate, Mark Barrus announces his retirement to focus on the education field. Mark is expected to remain with the company for several weeks in order to ensure a smooth transition. The Board thanks Mark for his efforts over the last fifteen months.
Given the challenging current business environment as well as the desire to take advantage of significant future opportunities which have been identified, the Board has approved a plan to strengthen the top management team by having Sanjay Singh, our current Board Vice-Chairman join the company as a full time employee. Mr. Singh has been elected Executive Chairman of the Board. As Executive Chairman, Mr. Singh will not only be able to support our President and CEO Gary Medved as the company deals with today’s unprecedented challenges but will also be able to focus on future longer-term strategic planning and activities. Mr. Singh’s primary responsibilities include vision and long-term strategy setting, proper allocation of resources, sound governance, growth in enterprise value and champion of the company’s values. In order to ensure that current cash flow is not impacted Mr. Singh has agreed that all compensation for the balance of 2020 shall be in the form of stock rather than cash. Mr. Singh comes to MACE from a privately owned manufacturer, where the enterprise value of the company significantly increased under his leadership as President.
Mr. Singh commented: “I am privileged to have the support of our Board and be able to work with an amazing team of associates who are passionate about providing the most innovative and highest quality non-lethal personal safety products and services to its customers worldwide. The opportunities to grow this iconic brand name company based in Northeast Ohio are tremendous and I am excited to go to work with Gary Medved and his team to do that. Gary is a bold, results-oriented leader, and I am honored to work with him to drive superior execution and strengthen the balance sheet. A lot of work lies ahead of us to unlock the value of MACE and we will move with urgency to do that. Our most immediate priority is to conserve cash and take advantage of the CARES Act stimulus package so that we can continue to take care of our customers, suppliers, sales representatives, and, most importantly, our associates.”
About Mace Security International, Inc.
Mace Security International Inc. is a globally recognized leader in personal safety and security 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 Companies other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand 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.
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.
Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, integration initiatives and timing of synergy realization) or other business decisions, as well as from developments beyond the Company’s control, including:
- changes in domestic and global economic conditions, competitive conditions and consumer preferences.
- adverse weather conditions or natural disasters.
- health concerns, including COVID-19, and the availability of our employees.
- labor markets and activities.
- impact on our distribution channels, particularly our brick and mortar channels
- demand for our products and services; and
- impact of a slowdown in consumer spending as a result of the COVID-19 emergency.
President and Chief Executive Officer