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$ DTII LUDLOW RESEARCH Updated July 9, 2017
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DEFENSE TECHNOLOGIES INTERNATIONAL (OTC:DTII)

Updated: July 09, 2017

DTII Preferred Debt Settlement Has Floor at $0.01 Per Share
(NEW YORK) – Ludlow Research updates its outlook on Defense Technologies International Corp (OTCQB:DTII) (The Company), a developer of security technologies, with a short term target of $0.02 to $0.03+ per share based on new debt settlement floor.

Debt Settlement Floor
On June 13, 2017, the Company announced it had issued 1,751,824 preferred shares to two individuals in exchange for full payment of $175,182 of debt. Each Series A preferred share is convertible into 10 shares of DTII common stock, and carries voting rights on the basis of 100 votes per preferred share on any vote of common stockholders.
If fully converted those preferred shares would come out to around 17,518,240 common shares. For the debt holders of the new preferred shares to be made whole on their $175,000 debt DTII stock would have to be trading at a minimum price of at least $0.01 to $0.02 per share, thus setting a floor on any expected conversion.

Authorized Shares
Even if DTII stock were to rise above $0.01 to $0.02 the preferred shareholders wouldn’t be able to convert into common shares anyways as the shares authorized are capped at 200 million currently. So without any raise in the authorized to cover any conversion the fear of dilution has now been all but removed for the time being.

In addition, we have confirmed with the Company, that any future conversion should it happen would convert into “restricted” common shares, thus reducing the risk even more that shares could come into the market above $0.01 or $0.02 per share.

Based on the structure of this settlement into preferred shares it looks like the new preferred shareholders are in this stock for the long haul, and probably at much higher prices then $0.01 to $0.02 per share.

Summary
Based on the Company’s patent on their non X-ray emission walk through detection system, strong Board of Advisors, authorized shares remaining at 200 million, and new debt settlement floor set at $0.01 per share, Ludlow Research has issued a ‘short-term’ target on DTII of $0.02 to $0.03+ per share.

Non X-Ray Metal Detectors
The Company’s ‘Offender Alert Passive ScanTM is a 'next generation' walk-through detector scanning unit. Its special value comes from its passive and emits nothing through the subjects, while security scanner systems currently in utilization effectively use X-ray in some form. This patented and trademarked passive scanning system allows for detecting and identifying concealed threats, such as guns and knives etc, while offering no X-ray exposure to subjects scanned by the system.

Revenue Potential
The Offender Alert Passive ScanTM is expected to retail for around $2,995 USD, but for sake of simplicity lets say an even $3,000 per unit.

A conservative purchase order of just 1,000 units would equate to $3 million in sales. As the Company begins to build up distribution partnerships, and you add in for other venues like sports stadiums and government buildings, and possible International distribution, annual sales of even just 5,000 units could equate to potentially $15 million for DTII.

School Market: The non X-ray feature with the Offender Alert Passive ScanTM could become a very attractive selling point, especially for places like schools where children’s health concerns are an issue.

The market potential for schools in the US alone is over 250,000. If the Company were to secure just 10% of the school market with their new non X-ray units that would equate to nearly 25,000 schools, and this in the US alone mind you.

Of course any large purchase order with school districts would contain an attractive discount for the purchaser, but for general purposes 25,000 school x $3,000 per unit = $75 million in sales.

Note: This does not take into account for international sales to schools, or other high traffic venues such as office buildings, airports, nightclubs, and sports arenas here in the US, and abroad.

About Defense Technologies International Corp.
Defense Technologies International Corp (OTCQB:DTII) core ideology is to provide superior solutions for today’s new world risks and threats. DTC is positioned to enter the, until now, untapped public school market segment for threat detection security. DTC has assembled a respected team of experts with decades of experience sharing a common vision of safety, quality, service & share holder value. Team members bring to bear a broad spectrum of executive, international & corporate experience, coupled with extensive diplomatic relationships both at home and abroad. www.defensetechnologiesintl.com

About Ludlow Research
Ludlow Research is a New York based equity research firm that focuses on providing research coverage and investor awareness services to emerging small-cap companies. For over 14 years we have worked to provide our readers with a simple way of evaluating the current and potential value of small-cap companies, while garnering these clients greater market awareness to new investors. For more information on us please visit www.ludlowresearch.com


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