VANCOUVER, BC--(Marketwired - September 05, 2017) - Mission Ready Services Inc. ("Mission Ready" or the "Company") (TSX VENTURE: MRS) reports that, after an extensive evaluation of the costs and benefits of its acquisition of Wild Things, LLC ("Wild Things"), conducted over the past five months through cooperative efforts with the Wild Things team, the Company has chosen not to proceed with the transaction.

Mission Ready has concluded that the near-term growth prospects of certain well-advanced, unrelated manufacturing and sales opportunities outweigh the value to the shareholders of the Wild Things acquisition. In addition, management believes it to be in the best interest of its shareholders to effectively remove USD$4.15MM -- approximately CAD$5.4MM -- in debt from the Mission Ready balance sheet and to focus Company resources on its rapidly expanding product development and manufacturing business while growing its national and international client network.

Jeffery Schwartz, President & CEO of Mission Ready states, "On behalf of all of us at Mission Ready, we express our sincere appreciation to the Wild Things team for their hard work and dedication and we wish them all the best going forward. We are firm advocates of the Wild Things brand and would welcome the opportunity to maintain a close working relationship with the Wild Things team and continue to manufacture Wild Things products as required." Mr. Schwartz also states, "We would also be open to exploring a future arrangement with Wild Things on terms that are deemed to be accretive to the Company and in the best interest of the Mission Ready shareholders."

Pursuant to the terms of the Wild Things Asset Purchase Agreement, the Company is obligated to pay a Break Fee of USD$200,000 -- of which USD$100,000 has already been paid -- and return the shares of the Company's Wild Things USA Inc. subsidiary to the shareholders of Wild Things, LLC.

Further to the additional time and resources afforded to the Company, the decision to cancel the Wild Things acquisition will also have an impact on the Company's financial statements that, management believes, will better position the Company for the procurement of growth capital.

Effect on Mission Ready's Balance Sheet ¹ (at June 30, 2017)

  • Elimination of Notes Payable and Current Liabilities totaling $6.6MM
  • Reduction of $2.77MM of Intangible Assets, $2.59MM of Inventory and $0.65MM of Accounts Receivable

Effect on Mission Ready's Income Statement (for the 6-months ended June 30, 2017) ¹

  • Reduction of $1.0MM offset by a reduction in Total Expenses of $1.5MM
  • Net Operating Loss for the period reduced by $0.48MM

The Company is negotiating agreements for large foreign military opportunities -- expected to be completed shortly -- where Company resources that were previously dedicated to the Wild Things business will be immediately redirected.