Byrna Technologies Inc. (NASDAQ: BYRN) (“Byrna”, “the Company”, “we” or “us”) is pleased to announce that it has sold the IP and tooling underlying it’s legacy 40mm business to Facta Global of Canada for an undisclosed sum including both cash and future royalty payments to Byrna on all 40mm BIP’s sold globally. Byrna will retain the exclusive rights to sell the 40mm BIP in the U.S. and South Africa. Byrna suspended sales of the 40mm round almost a year ago due to production problems at its third-party contract manufacturer, Micron Products. Since July of last year, Byrna has been unable to meet the demand from its legacy 40mm customers.
With the sale of the tooling and intellectual property to Facta Global, the BIP is back in production (at Facta Global’s production facility) and Byrna will be able to start supplying its iconic 40mm “BIP” to its law enforcement customers throughout the United States as soon as July. The reintroduction of the Byrna BIP, coupled with Byrna’s recent acquisition of Fox Labs (the manufacturer of the most powerful pepper spray for law enforcement) and the introduction of the Byrna TCR, gives Byrna a full complement of less-lethal products specifically designed for law enforcement.
Facta Global, founded in 2012 by an ex-military and a former Canadian Special forces (Joint Task Force Two) member, is one of the leading law enforcement training organizations in Canada. Facta works closely with law enforcement agencies throughout Canada as well as with the Canadian Military, providing innovative less-lethal tools and training with one mission – to save lives. Since its inception, Facta Global has partnered with Byrna technologies (previously Security Devices International) as the Canadian distributor of the BIP and as a subject matter expert for the 40mm line. For many years, Facta Global was SDI’s largest customer. With this sale, production of the 40mm BIP is transferred to Facta Global’s manufacturing facility in Canada. For the US market, the final assembly will be handled by Byrna.
Bryan Ganz, CEO of Byrna, stated, “I could not be happier to see Facta Global take over production of the BIP. They have been a great partner over many years, and no one has more experience with the 40mm BIP than Facta Global. This is truly a win-win situation in which Byrna gets a steady reliable supply of 40mm BIPs for its law enforcement customers and Facta Global gets the rights to what is arguably the best 40mm technology on the market today. With law enforcement being 100% of Facta’s business and only a few percent of Byrna’s business, it makes sense for Facta to acquire ownership of the BIP. At the same time, Byrna gets an asset off its balance sheet that it was not using and in return gets a lump sum cash payment and a steady stream of royalty income for the next eight years.”
Facta Global understands that operational environments, missions, and requirements are constantly changing, but the one constant is to give law enforcement officers a strategic and operational advantage in all encounters. The BIP provides just such an advantage. It’s a known fact that the BIP 40mm impact projectile is not only the safest round on the market today but also the only round that produces the maximum energy with least impact at all operational distances.”