Mission Ready Announces Q2 2020 Results, Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA, CANADA – AUGUST 31, 2020 – Mission Ready Solutions Inc. (“Mission Ready” or the “Company”) (TSXV: MRS) is pleased to provide the following summary of its financial results for the second fiscal quarter ended June 30, 2020 which were reported today, and filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”).

Q2 2020 Financial Summary (expressed in CAD unless otherwise indicated)
– Record 3-month sales revenues – $27.21 million, and gross profit of $2.05 million, for the three months ended June 30, 2020;
– Record six-month sales revenues – $42.30 million, and gross profit of $2.86 million, for the six months ended June 30, 2020;
– Net cash used in operating activities reduced by $1.57 million to $0.86 million for the six months ended June 30, 2020 as compared to the same period in 2019;
– Settled $2,190,658 in outstanding creditor debt through the issuance of 14,604,387 common shares of the Company, resulting in a recognized gain on settlement of debts of $949,285 during the six months ended June 30, 2020; and
– Received a total of US$488,400 under the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) administrated by the US Small Business Administration to aid in covering payroll costs and providing financial relief for Company employees.

The Company’s Financial Statements, Management Discussion and Analysis and related filings for the second fiscal quarter ended June 30, 2020, can be viewed at the following link:


Manufacturing Contract Update
Further to its news release dated June 19, 2020 announcing a contract to manufacture female-specific body armor for military personnel, the Company reports that the purchase order, valued at C $2.9MM, has been cancelled by the third-party vendor (“Purchaser”). Mission Ready is reviewing the circumstances resulting in the cancellation by the Purchaser and exploring its recourse options to include the potential recoupment of the program costs incurred by the Company to date.

Accounts Receivable Financing Facility
Mission Ready is pleased to announce that its wholly-owned subsidiary, Unifire, Inc. (“Unifire”), has entered into an accounts receivable (“AR”) financing agreement (the “AR Agreement”) with Crestmark, a division of MetaBank®, N.A. (“Crestmark”). Crestmark is the commercial lending division of a large bank headquartered in Sioux Falls, SD. Crestmark will advance up to USD $8,000,000 to Unifire, utilizing an advance formula of 90% of the face value of invoices outstanding. The AR Agreement will be secured by the assets of Unifire, including a first-ranking security interest in its accounts receivable. The fees payable on funds advanced are set at 1% for the first 30-day period, and an incremental discount of 0.165% for each five-day period thereafter.

About Mission Ready Solutions Inc.
Mission Ready specializes in providing comprehensive government contracting solutions through its privileged access to a host of government contracting vehicles including its Special Operational Equipment (“SOE”) Tailored Logistics Support (“TLS”) contract administered by the United States Defense Logistics Agency (“DLA”), and Multiple Award Schedule contracts administered by the United States General Services Administration (“GSA”).

Mission Ready’s wholly-owned subsidiary, Unifire, Inc. (“Unifire”), is one of six companies, globally, authorized to provide equipment and designated services under DLA’s SOE TLS program. Unifire is a designated 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 the SOE TLS contract, with extensive knowledge and experience in providing solutions to the US Federal Government, Unifire utilizes its highly-efficient, scalable technology infrastructure to provide procurement solutions for program managers, military and federal contracting offices, base supply centers, and other governmental supply agencies.

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 5
E: IR@MRSCorp.com

Mission Ready Solutions Inc.

(Signed “James A. Marks”)

James A. Marks
Chief Executive Officer
Ph: +1 877.479.7778

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information
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. 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.