PALM BEACH, Fla., Oct. 8, 2013 /PRNewswire/ -- Global Digital
Solutions, Inc. (GDSI), a company that is positioning itself as a
leader in providing small arms manufacturing, complementary
security and technology solutions and knowledge-based,
cyber-related, culturally attuned social consulting in unsettled
areas, today announced that the company's planned merger partner,
Airtronic USA, Inc. ("Airtronic"),
has become the exclusive OEM (Original Equipment Manufacturer)
supplier for a major international client under a private label
agreement with a first stage value of approximately $95 million.
The agreement is for Airtronic's family of M203 and M203A
grenade launchers, some of which will be equipped with Airtronic's
patent-pending locking device that imparts enhanced stability and
accuracy.
"This is exciting but not completely unexpected news," said
GDSI's President and CEO Richard J.
Sullivan. "The agreement demonstrates what we have
been saying all along: Airtronic is well-positioned for
strong growth as a well-respected, advanced small arms
manufacturer. We congratulate the entire Airtronic team on
this significant development."
On October 2, 2013, the United
States Bankruptcy Court for the Northern District of Illinois, Eastern Division, confirmed the
amended chapter 11 bankruptcy reorganization plan ("Plan")
submitted by Airtronic. Now that the Plan has been confirmed
by the court, GDSI will be able to complete its acquisition of
Airtronic. Airtronic's bankruptcy case will be dismissed upon
the consummation of the Plan – which includes completion of the
merger with GDSI – and Airtronic will be capitalized with adequate
working capital to compete effectively as an innovative leader in
small arms manufacturing.
"We're thrilled to be able to announce this substantial OEM
agreement so soon after the court confirmed our reorganization
plan," said Dr. Merriellyn Kett, Airtronic's President and CEO who
will continue serving as the company's CEO after the merger between
GDSI and Airtronic is finalized. "The Airtronic team has been
very busy working to meet the needs of our customers in
the United States and around the
world. This exclusive OEM agreement is a testament to the
world-class quality of our products and the excellent relationships
we have established with our customers over the years."
Founded in 1990, Airtronic is a well-respected, award-winning
manufacturer of critical battlefield weapons. The company
provides small arms and small arms spare parts to the U.S.
Department of Defense, foreign militaries, and the law enforcement
market. The company's products include grenade launchers,
rocket propelled grenade launchers, grenade launcher guns, flex
machine guns, grenade machine guns, rifles, and magazines.
Airtronic is a member of the National Small Arms Technology
Consortium (NSATC) and the largest woman-owned small arms
manufacturing company in the United States. The company has
received commendations from the US Army Tank, Armaments, and
Automotive Command and the Defense Logistics Agency for the quality
and on-time delivery of its products.
About Global Digital Solutions, Inc.
Global Digital
Solutions is positioning itself as a leader in providing small arms
manufacturing, complementary security and technology solutions and
knowledge-based, cyber-related, culturally attuned social
consulting in unsettled areas. For more information please
visit http://www.gdsi.co.
About Airtronic USA,
Inc.
Airtronic is an electro-mechanical engineering design and
manufacturing company. It provides small arms and small arms spare
parts to the U.S. Department of Defense, foreign militaries, and
the law enforcement market. . The company's products include
grenade launchers, rocket propelled grenade launchers, grenade
launcher guns, flex machine guns, grenade machine guns, rifles, and
magazines. Founded in 1990, the company is based in Elk Grove Village, Illinois. On
May 16, 2012, the Chapter 7
bankruptcy of Airtronic was converted to a Chapter 11
reorganization. The company's Chapter 7 bankruptcy case had begun
on March 13, 2012. For more
information, please visit www.Airtronic.net.
Forward Looking Statements
This press release contains
"forward looking statements" within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
The statements contained in this press release that are not purely
historical are forward-looking statements. Forward-looking
statements give the Company's current expectations or forecasts of
future events. Such statements are subject to risks and
uncertainties that are often difficult to predict and beyond the
Company's control, and could cause the Company's results to differ
materially from those described. The Company is providing
this information as of the date of this press release and does not
undertake any obligation to update any forward looking statements
contained in this press release as a result of new information,
future events or otherwise, except as required by law. We
have based these forward looking statements largely on our current
expectations and projections about future events and financial
trends affecting the financial condition of our business.
Forward looking statements should not be read as a guarantee of
future performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved. Important factors that could cause
such differences include, but are not limited to the Risk Factors
and other information set forth in the Company's Registration
Statement on Form 10/A filed on October 7, 2013, and in our
other filings with the U.S. Securities and Exchange Commission.
Contact:
W. J. Delgado
916-838-8833
info@gdsi.co
Richard J. Sullivan
561-515-6163
info@gdsi.co
SOURCE Global Digital Solutions, Inc.