Mace completes rights offering

HORSHAM, PA– August 2, 2011 - Mace Security International, Inc. has announced the completion of its registered rights offering to its stockholders pursuant to a Registration Statement ("Registration Statement") filed with the Securities and Exchange Commission that was declared effective on June 29, 2011 (the "Rights Offering").

Under the Rights Offering, each Mace stockholder was given the right to purchase three shares of common stock for each share of common stock owned of record on June 27, 2011, at an exercise price of $0.20 per share. A total of 22,372,616 shares of common stock were purchased in the Rights Offering. Of the 22,372,616 shares of common stock purchased, 16,305,144 were purchased under the basic subscription right and 6,067,472 were purchased through the oversubscription privilege. Net proceeds after expenses from the Rights Offering were approximately $4.3 million. Additionally, Merlin Partners, LP and its assignees will purchase 20 million shares of the Company’s common stock on August 2, 2011 under the Securities Purchase Agreement dated March 25, 2011 for net proceeds of $3,750,000.

As described in the Company’s prospectus dated June 30, 2011, the unsubscribed shares of common stock (the "Available Shares") are being offered at a price of $0.20 per share. The offering of the Available Shares will commence on August 2, 2011, 9:00 AM; Eastern Daylight Time, and conclude on August 15, 2011, 5:00 PM; Eastern Daylight Time. A prospectus and prospectus supplement fully describing the terms and conditions of the offering of the Available Shares, and subscription agreements for the Available Shares, may be obtained from Ancora Securities, Inc. The Company has the right to reject any subscription in whole or in part and currently intends to accept subscriptions only on a selective basis as well as from employees and directors of the Company.

Dennis Raefield, Mace’s CEO and President stated, "We are happy with the results of our completed Rights Offering and we consider it a success. We had previously announced that the proceeds of the Rights Offering will be used to pay debt, fund operations and marketing efforts, and make acquisitions. The use of the proceeds of the Rights Offering and the offering of the Available Stock is more fully described in the prospectus for offering."

 

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