NOCSAE has accepted a solution that will involve a simple modification to Cascade R helmets currently in the marketplace. Cascade's data confirms the helmet, as modified by this solution, meets NOCSAE certification standards. Cascade will make the modification to existing helmets at its Liverpool, N.Y. facility beginning December 16. The modification will be free of charge for consumers and retailers, including related shipping costs.
Details regarding the process to modify existing Cascade R helmets can be found at www.cascadelacrosse.com.
The Cascade R helmet launched in June 2013 and approximately 110,000 units have been sold into the market. The Company estimates that the cost of modifying existing Cascade R helmets is between $2-4 million.
Cascade is currently conducting a third-party audit of its quality assurance and quality control (QA/QC) processes and expects the audit to be completed by December 18. NOCSAE will partially reinstate Cascade's license agreement for the production of new Cascade R helmets upon demonstration of satisfactory audit results. These helmets will be designated as Cascade R-M helmets for NOCSAE certification purposes but marketed and sold as Cascade R helmets.
The license agreement will be fully restored to allow for the resumed production of all other Cascade models upon demonstrating that such models certified by Cascade are supported by necessary testing data. Cascade is currently reviewing test results for all of its lacrosse helmets to ensure they meet both Cascade and NOCSAE standards.
PSG will provide further updates in relation to this matter as appropriate.
About Performance Sports Group Ltd.
Performance Sports Group Ltd. (NYSE: PSG) (TSX: PSG) is a leading developer and manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball sports equipment, as well as related apparel and soccer apparel. The Company is the global leader in hockey with the strongest and most recognized brand, and it holds the No. 1 North American position in baseball and softball. Its products are marketed under the BAUER, MISSION, MAVERIK, CASCADE, INARIA, COMBAT and EASTON brand names and are distributed by sales representatives and independent distributors throughout the world. The Company is focused on building its leadership position by growing market share in all product categories and pursuing strategic acquisitions.
For more information, please visit www.PerformanceSportsGroup.com.
Caution Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of applicable securities laws including with respect to the agreement, process and timing to modify existing Cascade R helmets to meet the NOCSAE certification standards, and the anticipated related costs that will be incurred by the Company; the satisfactory completion and anticipated timing of a third-party audit of Cascade's quality assurance and quality control processes; the resulting partial reinstatement of Cascade's license agreement by NOCSAE and the immediate production of new Cascade R-M helmets; and the full restoration of the license agreement upon demonstration to NOCSAE that all other Cascade models certified by Cascade are supported by the necessary testing data. The words "may," "will," "would," "should," "could," "expects," "plans," "intends," "trends," "indications," "anticipates," "believes," "estimates," "predicts," "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to important risks and uncertainties. Many factors could cause PSG's actual results to differ materially from those expressed or implied by the forward-looking statements. You should be aware that our success depends on, among other things, the value and reputation of our brands. Negative publicity regarding any of our brands or products, including in connection with the recently decertified Cascade R helmet as well as the corresponding suspension of the NOCSAE license agreement and the pending partial reinstatement and subsequent full restoration described above, could adversely affect PSG's reputation and sales. We also face costs and expenses associated with the modification of such helmets and steps to be undertaken to meet NOCSAE certification standards or address consumer returns, exchanges or warranty claims. Furthermore, our results of operation could be materially harmed if the license agreement with NOCSAE is not partially reinstated and subsequently fully restored, or if we experience or become aware of additional products being decertified. Such product issues can harm our reputation and cause us to lose customers, particularly if those issues cause consumers to question the safety or reliability of our products. There can be no assurance that our future products will satisfy the standards established by testing and athletic governing bodies, that our in-house testing equipment will produce the same results as the equipment used by the applicable testing bodies, athletic organizations and governing bodies or that existing standards or testing protocols will not be altered in ways or at times that adversely affect our brands and the sales of our products. Any failure to comply with applicable standards or resolve identified issues with applicable governing bodies could have an adverse effect on our business and financial condition. Our products also expose us to warranty claims and product liability claims, and potential class action lawsuits, in the event that products manufactured, sold or designed by us actually or allegedly fail to perform as expected, or the use of those products results, or is alleged to result, in personal injury, death or property damage. Additional risk factors are detailed in the "Risk Factors" section of PSG's MD&A for the first quarter and PSG's Annual Information Form dated August 27, 2014 which are available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Company Contact: Amir Rosenthal/ Chief Financial Officer/ Tel 1-603-610-5802
Investor Relations: Liolios Group Inc./ Scott Liolios or Cody Slach/ Tel 1-949-574-3860
Media Contact: Steve Jones / Sr. Director, Corporate Communications / Tel 1-603-430-2111
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