<SEC-DOCUMENT>0001062993-13-002355.txt : 20130808
<SEC-HEADER>0001062993-13-002355.hdr.sgml : 20130808
<ACCEPTANCE-DATETIME>20130509153612
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001062993-13-002355
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130509

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Security Devices International Inc.
		CENTRAL INDEX KEY:			0001354866
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1101 PENNSYLVANIA AVE NW
		STREET 2:		6TH FLOOR
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20004
		BUSINESS PHONE:		647-388-1117

	MAIL ADDRESS:	
		STREET 1:		338 CHURCH STREET
		CITY:			OAKVILLE
		STATE:			A6
		ZIP:			L6J 1P1
</SEC-HEADER>
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   <TITLE>Security Devices International Inc.: SEC Correspondence - Filed by newsfilecorp.com</TITLE>
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<P align=justify>May 9, 2013 </P>
<P align=justify>Amanda Ravitz <BR>Assistant Director <BR>Securities and
Exchange Commission <BR>100 F Street, N.E. <BR>Washington, D.C. 20549 <BR></P>
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  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Re:</B> </TD>
    <TD align=left width="90%"><B>Responses to the Securities and Exchange
      Commission</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="90%"><B>Staff Comments dated April 29, 2013,
      regarding</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="90%"><B>Security Devices International Inc. (the
      &#147;Corporation&#148;)</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="90%"><B>Amendment No. 1 to Registration Statement on
      Form S-1</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="90%"><B>Filed April 12, 2013</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="90%"><B>File No. 333-187138</B> </TD></TR></TABLE>
<P align=justify>Dear Ms. Ravitz: </P>
<P align=justify>This letter responds to comments from the staff (the &#147;Staff&#148;)
of the United States Securities and Exchange Commission set forth in the April
29, 2013 letter regarding the above-referenced Amendment No. 1 to Registration
Statement on Form S-1. Amendment No. 2 to the Registration Statement on Form S-1
filed on March 8, 2013 with the United States Securities and Exchange Commission
is being filed concurrently herewith (&#147;Amendment No. 2&#148;).</P>
<P align=justify>For your convenience, the Staff&#146;s comments are included below
and we have numbered our responses accordingly. </P>
<P align=justify>Our responses are as follows: </P>
<P align=justify><U>Prospectus Cover Page</U> </P>
<P align=justify><B>Staff Comment No. 1. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>We note your response to our previous
comment 3. Please revise to state clearly, if true, that the par value of the
shares will remain denominated in U.S. dollars and that only the purchase price
and settlement amounts will be denominated in Canadian dollars. Also state
explicitly whether the shares being offered can be resold on the OTCBB
regardless of whether they were purchased by Canadian purchasers or U.S.
purchasers. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure on the prospectus cover page to state that the par value of the
shares will remain denominated in U.S. dollars and that the shares being offered can be resold on the OTCQB tier of the OTC
Link regardless of whether the shares were purchased by Canadian purchasers or
U.S. purchasers.</P>
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<P align=justify>Amanda Ravitz <BR>Securities and Exchange Commission <BR>May 9,
2013 <BR>Page 2 <BR></P>
<P align=justify><B>Staff Comment No. 2. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Please revise to explain how and when
the Canadian dollar-denominated purchase price for U.S. purchasers will be
calculated. For instance, indicate how and when you will determine the exchange
rate. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure on the prospectus cover page to state that U.S. purchasers will be
required to deposit Canadian funds with the Corporation in order to purchase the
Common Shares. As such, the Corporation cannot provide an exchange rate
applicable to the purchases of Common Shares. The value of a U.S. purchaser&#146;s
investment in the Corporation will depend on the exchange rate prevailing at the
time of purchase.</P>
<P align=justify><B>Staff Comment No. 3. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Please refer to our previous comment 4.
We note that you have disclosed that U.S. investors&#146; funds will be returned if
the offering in Canada is not completed and removed the language that the U.S.
investors will make payment only at the closing of the offering. However, the
statement that U.S. investors&#146; funds will only be accepted at closing still
appears elsewhere in the prospectus. We also note that reference to the escrow
for Canadian investors&#146; funds has been removed on the cover but preserved
elsewhere in the prospectus. Please clarify the funding mechanics, including
when relative to the termination date funds will be returned to U.S. investors
in the event the Canadian minimum amount is not reached, and reconcile your
disclosure accordingly. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have removed disclosure
stating that U.S. investors&#146; funds will only be accepted at closing. We have
revised our disclosure on the prospectus cover page and in the prospectus
summary to state that all funds will be returned to U.S. investors within 10
business days in the event the offering is terminated. </P>
<P align=justify><B>Staff Comment No. 4. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>As there is a minimum amount of shares
to be sold in Canada for the offering to be completed, it is not clear how you
determined in response to prior comment 4 that identification of the Canadian
placement agent is not material for U.S. investors. Please revise to identify the placement agent.
Furthermore, it is not clear how you determined that the Canadian placement
agent is not an underwriter within the meaning of Section 2(a)(11) of the
Securities Act given its participation in facilitating a public offering in the
United States. Please provide us a detailed analysis or revise as appropriate.</P>
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<P align=justify>Amanda Ravitz <BR>
  Securities and Exchange Commission <BR>May 9,
2013 <BR>Page 3 <BR></P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure as requested to include the name of the agent in Canada on the cover
page of the prospectus and in the prospectus summary.</P>
<P align=justify><B>Staff Comment No. 5. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Refer to our previous comment 7. We
note that your revised disclosure does not state a specific date on which the
offering will terminate and in fact, the disclosure suggests that the offering
may be extended indefinitely. Please revise to state the specific date that the
offering will terminate. See Item 501(b)(8)(iii) of Regulation S-K. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure on the prospectus cover page and in the prospectus summary to state
that the offering will terminate on the earlier of (i) 10 business days
following the date which the Canadian minimum offering is satisfied, or (ii)
within 90 days of the filing of a final prospectus in Canada, which may be
extended by an additional 90 days if an amendment to such final prospectus has
been filed in Canada, but in no event more than 180 days from the date of the
filing of the final prospectus in Canada.</P>
<P align=justify><U>Liquidity and Capital Resources, page 26</U> </P>
<P align=justify><B>Staff Comment No. 6. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>We note your disclosure added on page
35 in response to our prior comment 21. Please identify the remaining balance of
your monthly capital commitments beyond that of your compensation obligations to
officers and directors. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure on page 35 of Amendment No. 2 to describe our additional monthly
capital commitments beyond compensation obligations to officers and
directors.</P>
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<P align=justify>Amanda Ravitz <BR>Securities and Exchange Commission <BR>May 9,
2013 <BR>Page 4 <BR></P>
<P align=justify><U>Interests of Management and Others in Material Transactions,
page 52</U> </P>
<P align=justify><B>Staff Comment No. 7. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>We note your revisions in response to
prior comment 23. Please expand your disclosure to identify the company to which
you paid $240,000 for services and quantify the amount of your chief operating
officer&#146;s interest in that company. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure on page 58 of Amendment No. 2 to identify Level 4 Capital Corp. as
the recipient of the above referenced payment and to state that our chief
operating officer has a 50% interest in Level 4 Capital Corp.</P>
<P align=justify><U>Plan of Distribution, page 66</U> </P>
<P align=justify><B>Staff Comment No. 8. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Refer to our previous comment 8. With
respect to approval of listing on the TSX of the shares to be sold in the
offering in Canada on the TSX, your response notes that you expect &#147;conditional
approval&#148; shortly. With a view toward clarified disclosure, please tell us what
the conditions to approval are and whether you expect the company to meet them
prior to effectiveness. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff's comment, the Corporation is
currently pursuing TSX-V approval and believes the remaining outstanding items
are limited to (i) the TSX-V finalizing its routine background checks on our
officers and directors, (ii) the TSX-V completing escrow arrangements with
control persons and current and former insiders of the Corporation regarding
existing warrants, options and common shares, and (iii) the TSX-V finalizing its
review of our Canadian transfer agent co-agency agreement. </P>
<P align=justify><B>Staff Comment No. 9. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>We note your discussion of the
availability of the safe harbor of Rule 3a4-1 on page 68. Please expand your
discussion to describe how your officers and directors involved in the offering
will identify prospective U.S. purchasers. </P>
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<P align=justify>Amanda Ravitz <BR>Securities and Exchange Commission <BR>May 9,
2013 <BR>Page 5 <BR></P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In response to the Staff&#146;s comment, we have revised our
disclosure on pages 9, 71, and 73 of Amendment No. 2 to explain that the
Corporation&#146;s officers and directors will offer the Common Shares only to
persons with whom officers and directors of the Corporation have pre-existing
relationships, including a limited number of existing shareholders of the
Corporation. </P>
<P align=justify><U>Exhibits, page 113</U> </P>
<P align=justify><B>Staff Comment No. 10. </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>We note that the escrow agreement
appears to be a form document provided by the TSX for its listed companies who
are required under the rules and policies of the exchange to escrow shares.
Please explain how this escrow arrangement will work in your circumstances and
confirm you will re-file as an exhibit the executed agreement between you and
the escrow agent. </P>
<P align=justify><B>Security Devices International Inc.&#146;s Response: </B></P>
<P align=justify>In connection with the offering in Canada, the Corporation will
enter into an agency agreement with an agent in Canada. Such agency agreement
will provide for the escrow of funds collected in the Canadian offering. There
will be no escrow of funds collected from United States purchasers in the United
States offering. The Corporation will not enter into any other agreement related
to the escrow of funds collected in the offering including any form of escrow
agreement mandated by the TSX. </P>
<P align=justify>The Corporation has removed as an exhibit the form of escrow
agreement provided by the TSX, as such escrow agreement relates only to the
escrow of shares currently held by insiders of the Corporation and does not
relate to the Common Shares being offered pursuant to the Amendment No. 2.</P>
<P align=center>* * * * * </P>

<P style="MARGIN-LEFT: 5%" align=justify>Security Devices International Inc.
hereby acknowledges that: </P>
<ul style="margin-left: 70pt"><li>
<P align=justify>Security Devices International Inc. is
responsible for the adequacy and accuracy of the disclosure in the filing. </P></li>
  <li>
    <P align=justify>Staff comments or changes to
      disclosure in response to staff comments do not foreclose the Commission from
    taking any action with respect to the filing. </P>
  </li>
  <li>
    <P align=justify>Security Devices International Inc.
      may not assert staff comments as a defense in any proceeding initiated by the
      Commission or any person under the federal securities laws of the United States. </P>
  </li>
</ul>
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<P align=justify>Amanda Ravitz <BR>
  Securities and Exchange Commission <BR>May 9,
2013 <BR>Page 6 <BR></P>
<P align=justify>Thank you for your review of the filing. If you should have any
questions regarding the response letter, please do not hesitate to contact the
undersigned at (202) 756-1960 or Richard Raymer, Esq. of Dorsey &amp; Whitney
LLP at (416) 367-7388. </P>
<P style="MARGIN-LEFT: 50%" align=justify>Sincerely, </P>
<P style="MARGIN-LEFT: 50%" align=justify>Security Devices International Inc.
</P>
<P style="MARGIN-LEFT: 50%" align=justify>/s/ Gregory Sullivan </P>
<P style="MARGIN-LEFT: 50%" align=justify>Gregory Sullivan <BR>Chief Executive
Officer </P>
<P
align=justify>cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Richard Raymer, Esq. - Dorsey &amp; Whitney LLP </P>
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