<SEC-DOCUMENT>0001062993-18-001557.txt : 20180409
<SEC-HEADER>0001062993-18-001557.hdr.sgml : 20180409
<ACCEPTANCE-DATETIME>20180409163731
ACCESSION NUMBER:		0001062993-18-001557
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20180409
DATE AS OF CHANGE:		20180409

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:				711050654
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-223995
		FILM NUMBER:		18745942

	BUSINESS ADDRESS:	
		STREET 1:		9325 PUCKETT ROAD
		CITY:			PERRY
		STATE:			FL
		ZIP:			32348
		BUSINESS PHONE:		905-582-6402

	MAIL ADDRESS:	
		STREET 1:		9325 PUCKETT ROAD
		CITY:			PERRY
		STATE:			FL
		ZIP:			32348
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>form424b3.htm
<DESCRIPTION>424B3
<TEXT>
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   <TITLE>Security Devices International Inc.: 424B3 - Filed by newsfilecorp.com</TITLE>
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<p align="right"><b>Filed Pursuant to Rule 424(b)(3)<br>
Registration No. 333-223995</b></p>
<p align="center"><b>PROSPECTUS</b> </p>
<P align=center><B>SECURITY DEVICES INTERNATIONAL INC. </B></P>
<P align=center><B>Common Stock</B> </P>
<P align=justify style="text-indent:10%">By means of this prospectus, a
number of the shareholders and warrant holders of Security Devices International
Inc. (&#147;we,&#148; &#147;our,&#148; &#147;us,&#148; &#147;SDI&#148; or the &#147;Company&#148;) are offering to sell up to:
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>35,783,612 shares of the Company&#146;s common stock, par
      value $0.001 per share (&#147;Unit Shares&#148;) issued in connection with a private
      placement transaction completed on November 28, 2017 (the &#147;Private
      Placement&#148;) for the sale of 35,783,612 units (the &#147;Units&#148;) at $0.106 per
      Unit, for gross proceeds of $3,793,063; </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>17,891,806 shares of the Company&#146;s common stock, par
      value $0.001 per share (the &#147;Unit Warrant Shares&#148;) issuable upon exercise
      of the Company&#146;s warrants issued in connection with the Private Placement
      (the &#147;Unit Warrants&#148;); and </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>572,354 shares of the Company&#146;s common stock, par value
      $0.001 per share (the &#147;Agent Warrant Shares&#148; and collectively with the
      Unit Warrant Shares, the &#147;Warrant Shares&#148;) issuable upon exercise of the
      Company&#146;s warrants issued to J Streicher Capital, LLC, a placement agent
      (the &#147;Agent&#148;) in connection with the Private Placement (the &#147;Agent
      Warrants&#148; and collectively with the Unit Warrants, the &#147;Warrants&#148;).
  </P></TD></TR></TABLE>
<P align=justify style="text-indent:10%">For purposes of this prospectus, the
Units Shares and the Warrant Shares are collectively referred to as the
&#147;Shares&#148;. Although we will receive proceeds if any of the Warrants are
exercised, we will not receive any proceeds from the sale of the Shares by the
selling shareholders. Any proceeds received from the exercise of Warrants will
be used for general corporate purposes. We will pay for the expenses of this
offering which are estimated to be $14,161. </P>
<P align=justify style="text-indent:10%">The selling shareholders may sell
Shares offered by this prospectus from time to time on terms to be determined at
the time of sale through ordinary brokerage transactions or through any other
means described in this prospectus under the caption &#147;Plan of Distribution.&#148; The
Shares may be sold at fixed prices, at market prices prevailing at the time of
sale, at prices related to prevailing market price or at negotiated prices. </P>
<P align=justify style="text-indent:10%">SDI&#146;s common stock is listed on
the OTCQB Venture Market under the symbol &#147;SDEV&#148; and is also listed in Canada on
the TSX Venture Exchange (&#147;TSXV&#148;) under the symbol &#147;SDZ.V&#148;. On March 26, 2018,
the closing price for our common stock was $0.16 on the OTCQB Venture Market and
CAD $0.195 on the TSXV. As of March 28, 2018, SDI had 93,861,054 outstanding
shares of common stock. </P>
<P align=justify style="text-indent:10%">Neither the Securities and
Exchange Commission (&#147;SEC&#148;) nor any state securities commission has approved or
disapproved of these securities or passed upon the accuracy or adequacy of this
prospectus. Any representation to the contrary is a criminal offense. </P>
<P align=center>1 </P>
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<P align=justify style="text-indent:10%"><B>THESE SECURITIES ARE
SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK. FOR A DESCRIPTION OF CERTAIN
IMPORTANT FACTORS THAT SHOULD BE CONSIDERED BY PROSPECTIVE INVESTORS, SEE &#147;RISK
FACTORS&#148; BEGINNING ON PAGE 25 OF OUR ANNUAL REPORT ON FORM 10-K FOR OUR FISCAL
YEAR ENDED NOVEMBER 30, 2017 (THE &#147;FISCAL 2017 10-K&#148;), WHICH IS INCORPORATED
HEREIN BY REFERENCE.</B> </P>
<P align=center>The date of this prospectus is April 9,
2018. </P>
<P align=center>2 </P>
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<P align=center><B>TABLE OF CONTENTS</B> </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left></TD>
    <TD noWrap align=left width="10%">Page&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD noWrap>&nbsp; </TD>
    <TD noWrap width="10%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_6">PROSPECTUS SUMMARY
</A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_6">4 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_8">INCORPORATION OF DOCUMENTS BY REFERENCE
      </A></TD>
    <TD align=right width="10%"><A href="#page_8">6 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_10">FORWARD-LOOKING
      STATEMENTS </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_10">8
</A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_10">DILUTION </A></TD>
    <TD align=right width="10%"><A href="#page_10">8 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_10">DESCRIPTION OF COMMON
      STOCK </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_10">8
</A></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_11">LEGAL MATTERS</a></TD>
    <TD align=right width="10%"><a href="#page_11">9</a></TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#EEEEEE"><a href="#page_11">EXPERTS</a></TD>
    <TD align=right width="10%" bgcolor="#EEEEEE"><a href="#page_11">9</a></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_12">SELLING SHAREHOLDERS </A></TD>
    <TD align=right width="10%"><A href="#page_12">10 </A></TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#eeeeee><A href="#page_15">PLAN OF DISTRIBUTION
    </A></TD>
    <TD align=right width="10%" bgColor=#eeeeee><A href="#page_15">13
  </A></TD></TR>
  <TR vAlign=top>
    <TD align=left><A href="#page_17">AVAILABLE INFORMATION </A></TD>
    <TD align=right width="10%"><A href="#page_17">15 </A></TD></TR></TABLE>
<P align=center>3 </P>
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<P align=center><B>PROSPECTUS SUMMARY</B> </P>
<P align=justify style="text-indent:10%"><I>This summary highlights
certain information about us, this offering and information appearing elsewhere
in this prospectus and in the documents we incorporate by reference. This
summary is not complete and does not contain all of the information that you
should consider before investing in our securities. To fully understand this
offering and its consequences to you should read this entire prospectus
carefully, including the documents incorporated by reference in this prospectus
before making an investment decision.</I> </P>
<P align=center><B>Our Company</B> </P>
<P align=justify style="text-indent:10%">SDI is a Delaware corporation
incorporated on March 1, 2005. The Company develops and manufactures innovative,
less lethal munitions and equipment that the Company believes are safe,
effective and reliable. For a discussion of our business, see Part I, Item 1,
&#147;Business&#148; in the Fiscal 2017 10-K, which is incorporated by reference in this
prospectus. </P>
<P align=justify style="text-indent:10%">Our principal office is located
at 107 Audubon Road, Bldg 2, Suite 201, Wakefield, MA 01880. Our telephone
number is (978) 868-5011 and our web site is <I>www.securitydii.com</I>. The
information contained in, and that which can be accessed through, our website is
not incorporated into and does not form a part of this prospectus. </P>
<P align=justify style="text-indent:10%">Our common stock is listed on the
OTCQB Venture Market under the symbol &#147;SDEV&#148; and is also listed in Canada on the
TSXV under the symbol &#147;SDZ.V&#148;. As of March 28, 2018, we had 93,861,054
outstanding shares of common stock. This number excludes 25,170,827 shares that
may be issued upon the exercise of outstanding options and warrants, including
the Warrant Shares. </P>
<P align=justify style="text-indent:10%">We filed the registration
statement on Form S-1, of which this prospectus is a part, to fulfill our
obligation under the Registration Rights Agreement entered into between the
Company and the various purchasers in the Private Placement. We agreed to file
the registration statement no later than March 28, 2018 and to use commercially
reasonable efforts to cause such registration statement to become effective 150
days following the date the registration statement is filed with the SEC, and to
keep such registration statement effective for a period of one year or for such
shorter period ending on the earlier to occur of (i) the date as of which all of
the selling shareholders may sell all of the securities registered under this
registration statement without restriction pursuant to Rule 144 under the
Securities Act (or any successor rule thereto) or (ii) the date when all of the
securities registered hereunder shall have been sold. </P>
<P align=center>4 </P>
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<P align=center><B>The Offering</B> </P>
<P align=justify style="text-indent:10%">By means of this prospectus a
number of persons are offering to sell up to: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>35,783,612 shares of the Company&#146;s common stock, par
      value $0.001 per share (&#147;Unit Shares&#148;) issued in connection with a private
      placement transaction completed on November 28, 2017 (the &#147;Private
      Placement&#148;) for the sale of 35,783,612 units (the &#147;Units&#148;) at $0.106 per
      Unit, for gross proceeds of $3,793,063; </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>17,891,806 shares of the Company&#146;s common stock, par
      value $0.001 per share (the &#147;Unit Warrant Shares&#148;) issuable upon exercise
      of the Company&#146;s warrants issued in connection with the Private Placement
      (the &#147;Unit Warrants&#148;); and </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%" >&nbsp; </TD>
    <TD width="90%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>572,354 shares of the Company&#146;s common stock, par value
      $0.001 per share (the &#147;Agent Warrant Shares&#148; and collectively with the
      Unit Warrant Shares, the &#147;Warrant Shares&#148;) issuable upon exercise of the
      Company&#146;s warrants issued to J Streicher Capital, LLC, a placement agent
      (the &#147;Agent&#148;) in connection with the Private Placement (the &#147;Agent
      Warrants&#148; and collectively with the Unit Warrants, the &#147;Warrants&#148;).
  </P></TD></TR></TABLE>
<P align=justify style="text-indent:10%">For purposes of this prospectus, the
Unit Shares and the Warrant Shares are collectively referred to as the &#147;Shares&#148;.
Although we will receive proceeds if any of the Warrants are exercised, we will
not receive any proceeds from the sale of the Shares by the selling
shareholders. Any proceeds received from the exercise of Warrants will be used
for general corporate purposes. We will pay for the expenses of this offering
which are estimated to be $14,161. </P>
<P align=justify style="text-indent:10%">The purchase of the securities
offered by this prospectus involves a high degree of risk. Risk factors include
our history of losses and our need for additional capital. For a description of
certain important factors that should be considered by prospective investors,
see &#147;Risk Factors&#148; beginning on page 25 of the Fiscal 2017 10-K which is
incorporated herein by reference. </P>
<P align=justify style="text-indent:10%">Additionally, the Company can give no
assurance that it will be able to successfully negotiate and execute a
definitive agreement relating to the Letter of Intent executed by the Company on
April 5, 2018 with an individual for the Company to acquire a portfolio of
intellectual property, which Letter of Intent is referenced in the Company&#146;s
Current Report on Form 8-K filed with the SEC on April 9, 2018. </P>
<P align=center>5 </P>
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<P align=center><B>INCORPORATION OF DOCUMENTS BY REFERENCE</B> </P>
<P align=justify style="text-indent:10%">We incorporate by reference the
filed documents listed below, except as superseded, supplemented or modified by
this prospectus, and any future filings, other than current reports furnished
under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on such form that
are related to such items, we will make with the SEC under Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act prior to the termination of the offering
which is the subject of this prospectus. Information in such future filings
updates and supplements the information provided in this prospectus. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>our Annual Report on Form 10-K for the fiscal year ended
      November 30, 2017, as amended by Amendment No. 1 on Form 10-K/A; and
    </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>our Current Reports on Form 8-K filed with the SEC on
      December 4, 2017, December 22, 2017, March 8, 2018 and April 9, 2018.</P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      The documents incorporated by reference contain important information
      concerning: </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      &nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>our Business; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Risk Factors relating to an investment in our securities;
      </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>our Controls and Procedures; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Directors, Executive Officers, Promoters and Control
      Persons </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Executive Compensation; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>Security Ownership of Certain Beneficial Owners and
      Management and Related Stockholders Matters; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>our Financial Statements and our Management&#146;s Discussion
      and Analysis of Financial Condition and Plan of Operation; and </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%">
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>our Legal Proceedings. </P></TD></TR></TABLE>
<P align=justify style="text-indent:10%">We will provide, without charge,
to each person to whom a copy of this prospectus is delivered, including any
beneficial owner, upon the written or oral request of such person, a copy of any
or all of the documents incorporated by reference above, including exhibits.
Requests should be directed to: </P>
<P align=center>Security Devices International Inc. <BR>107 Audubon Road, Bldg
2, Suite 201 <BR>Wakefield, MA 01880 <BR>(978) 868-5011
<BR><U>dthrasher@securitydii.com</U> </P>
<P align=center>6 </P>
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<P align=justify style="text-indent:10%">The documents incorporated by
reference may be accessed at our website: <U>www.securitydii.com</U>. </P>
<P align=center>7 </P>
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<P align=center><B>FORWARD-LOOKING STATEMENTS</B> </P>
<P align=justify style="text-indent:10%">This prospectus and the documents
that are incorporated by reference into this prospectus contain or incorporate
by reference &#147;forward-looking statements&#148; within the meaning of the &#147;safe
harbor&#148; provisions of the Private Securities Litigation Reform Act of 1995, as
amended, that may be identified by the use of words like &#147;may,&#148; &#147;will,&#148; &#147;could,&#148;
&#147;would,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;believe,&#148;
&#147;estimate,&#148; &#147;project,&#148; &#147;consider,&#148; &#147;predict,&#148; &#147;potential,&#148; &#147;feel,&#148; or other
comparable terminology. Forward-looking statements reflect our good-faith
evaluation of information available at the time the forward-looking statements
were made. However, such statements are dependent on and, therefore, can be
influenced by a number of external variables over which we have little or no
control. For a discussion of significant risk factors applicable to us, see Part
II, Item 7, &#147;Management&#146;s Discussion and Analysis of Financial Condition and
Plan of Operation&#148;, including the Section captioned &#147;Risk Factors&#148; therein, in
the Fiscal 2017 10-K, which is incorporated by reference in this prospectus.
Forward-looking statements are not, and should not be relied upon as, a
guarantee of future performance or results, nor will they necessarily prove to
be accurate indications of the times at or by which any such performance or
results will be achieved. As a result, actual outcomes and results may differ
materially from those expressed in forward-looking statements. We undertake no
obligation to update or revise forward-looking statements. </P>
<P align=center><B>DILUTION</B> </P>
<P align=justify style="text-indent:10%">The Company does not have
adequate revenue to fund all of its operational needs and may require additional
financing to continue its operations if it is unable to generate substantial
revenue growth. There can be no assurance that such financing will be available
at all or on favorable terms. Failure to generate substantial revenue growth
could result in delay or indefinite postponement of the Company&#146;s deployment of
its products, and may result in the Company looking to obtain such additional
financing, resulting in possible dilution. Any such financing will dilute the
ownership interest of the Company&#146;s shareholders at the time of the financing,
and may dilute the value of their shareholdings. </P>
<P align=center><B>DESCRIPTION OF COMMON STOCK</B> </P>
<P align=justify style="text-indent:10%">We are authorized to issue
200,000,000 shares of common stock. Holders of our common stock are each
entitled to cast one vote for each share held of record on all matters presented
to the shareholders. </P>
<P align=justify style="text-indent:10%">Holders of our common stock are
entitled to receive such dividends as may be declared by our Board of Directors
out of funds legally available and, in the event of liquidation, to share pro
rata in any distribution of our assets after payment of liabilities. Our Board
of Directors is not obligated to declare a dividend. It is not anticipated that
dividends will be paid in the foreseeable future. </P>
<P align=center>8 </P>
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noShade SIZE=5>
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<P align=justify style="text-indent:10%">Holders of our common stock do
not have preemptive rights to subscribe to additional shares if issued. There
are no conversion, redemption, sinking fund or similar provisions regarding the
common stock. All outstanding shares of common stock are fully paid and
non-assessable. </P>
<P align=center><b>LEGAL MATTERS</b></P>
<P align=justify style="text-indent:10%">The validity of the securities offered
in this prospectus will be passed upon for the selling shareholders by Hinckley,
Allen &amp; Snyder LLP.</P>
<P align=center><b>EXPERTS</b></P>
<P align=justify style="text-indent:10%">The consolidated financial statements
incorporated in this prospectus by reference to the Company&#146;s Annual Report on
Form 10-K have been audited by UHY McGovern Hurley LLP (with respect to the
Company&#146;s fiscal year ended November 30, 2017) and Schwartz Levitsky Feldman LLP
(with respect to the Company&#146;s fiscal year ended November 30, 2016), each an
independent registered public accounting firm, as stated in their reports, which
are incorporated herein by reference. Such consolidated financial statements
have been so incorporated in reliance upon the reports of such firm given upon
their authority as experts in accounting and auditing.</P>
<P align=center>9 </P>
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<P align=center><B>SELLING SHAREHOLDERS</B> </P>
<P align=justify style="text-indent:10%">The persons listed in the
following table plan to offer the Shares shown opposite their respective names
by means of this prospectus. The owners of the Shares are referred to as the
&#147;selling shareholders&#148;. The selling shareholders acquired their Shares in the
Private Placement, as described below. </P>
<P align=justify style="text-indent:10%">We will not receive any proceeds
from the sale of the Shares by the selling shareholders. We will pay all costs
of registering the Shares offered by the selling shareholders. These costs,
based upon the time related to preparing this section of the prospectus, are
estimated to be $14,161. The selling shareholders will pay all sales commissions
and other costs of the sale of the Shares offered by them. </P>
<P align=justify style="text-indent:10%">On November 28, 2017, the Company
completed a private placement (the &#147;Private Placement&#148;) for the sale of
35,783,612 units (the &#147;Units&#148;) at $0.106 per Unit, for gross proceeds of
$3,793,063. Each Unit consists of one (1) share of common stock and one-half
(1/2) of one Unit Warrant. Each Unit Warrant is exercisable into one Unit
Warrant Share or before November 28, 2022 at an exercise price of $0.18. If the
average closing price of the Company&#146;s common stock is over $0.36 per share for
a period of 20 consecutive trading days ending after November 28, 2019, the
Company may give notice to the registered holders of the Unit Warrants
accelerating the expiry date to a date not less than 30 days following the date
of such notice. </P>
<P align=justify style="text-indent:10%">In connection with the Private
Placement, the Company paid J Streicher Capital, LLC, a placement agent (the
&#147;Agent&#148;), $60,669 in cash commission and issued to the Agent 572,354 agent
warrants (the &#147;Agent Warrants&#148;). Each Agent Warrant is exercisable into one
share of common stock on or before November 28, 2022 at an exercise price of
$0.15. If the average closing price of the Company&#146;s common stock is over $0.30
per share for a period of 20 consecutive trading days ending after November 28,
2019, the Company may give notice to the registered holders of the Agent
Warrants accelerating the expiry date to a date not less than 30 days following
the date of such notice. </P>

<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>

    <TD vAlign=bottom noWrap align=left><BR><B>Name of Investor</B>
    </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><BR><b>Common Stock</b><BR><B>prior to</B> <BR><B>offering (1)</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><B>Warrant</B><BR><b>Shares
    (2)</b> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><BR><B>Shares to
      be</B> <BR><B>sold in this</B> <BR><B>offering</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><b>Common Stock</b><BR><B>ownership</B> <BR><B>after offering</B> <BR><B>(3)</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><BR><B>Percentage</B> <BR><B>ownership after</B> <BR><B>offering
      (4)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Arthur Cohen </TD>
    <TD align=left width="16%">6,551,512 </TD>
    <TD align=left width="16%">1,381,817 </TD>
    <TD align=left width="16%">4,145,451 </TD>
    <TD align=left width="16%">3,787,878 </TD>
    <TD align=left width="16%">3.37% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Joseph Healey </TD>
    <TD align=left width="16%">6,551,512 </TD>
    <TD align=left width="16%">1,381,817 </TD>
    <TD align=left width="16%">4,145,451 </TD>
    <TD align=left width="16%">3,787,878 </TD>
    <TD align=left width="16%">3.37% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Pierre F. Lapeyre Jr. </TD>
    <TD align=left width="16%">6,146,550 </TD>
    <TD align=left width="16%">3,073,275 </TD>
    <TD align=left width="16%">9,219,825 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Alan and Amy Meltzer Family Foundation </TD>
    <TD align=left width="16%">2,048,850 </TD>
    <TD align=left width="16%">1,024,425 </TD>
    <TD align=left width="16%">3,073,275 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Alan L. Meltzer 2012 GRAT </TD>
    <TD align=left width="16%">4,097,695 </TD>
    <TD align=left width="16%">2,048,850 </TD>
    <TD align=left width="16%">6,146,550 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Northeast Industrial Partners, LLC (5) </TD>
    <TD align=left width="16%">3,720,334 </TD>
    <TD align=left width="16%">552,727 </TD>
    <TD align=left width="16%">1,658,181 </TD>
    <TD align=left width="16%">2,614,880 </TD>
    <TD align=left width="16%">2.33% </TD></TR>
  <TR vAlign=top>
    <TD align=left>REF Securities &amp; Co. LP </TD>
    <TD align=left width="16%">4,915,909 </TD>
    <TD align=left width="16%">967,272 </TD>
    <TD align=left width="16%">2,901,816 </TD>
    <TD align=left width="16%">2,981,365 </TD>
    <TD align=left width="16%">2.65% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Doug Lipton and Lucia Smith JTWROS </TD>
    <TD align=left width="16%">2,100,454 </TD>
    <TD align=left width="16%">552,727 </TD>
    <TD align=left width="16%">1,658,181 </TD>
    <TD align=left width="16%">995,000 </TD>
    <TD align=left width="16%">0.89% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Vladimir Kitaygorodsky </TD>
    <TD align=left width="16%">902,364 </TD>
    <TD align=left width="16%">138,182 </TD>
    <TD align=left width="16%">414,545 </TD>
    <TD align=left width="16%">626,001 </TD>
    <TD align=left width="16%">0.56% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Donald A. Levantin (6) </TD>
    <TD align=left width="16%">885,312 </TD>
    <TD align=left width="16%">377,756 </TD>
    <TD align=left width="16%">1,133,268 </TD>
    <TD align=left width="16%">129,800 </TD>
    <TD align=left width="16%">0.12% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Keith Morrison </TD>
    <TD align=left width="16%">570,810 </TD>
    <TD align=left width="16%">190,846 </TD>
    <TD align=left width="16%">572,537 </TD>
    <TD align=left width="16%">189,119 </TD>
    <TD align=left width="16%">0.17% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Ganz 1997 Trust </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">235,849 </TD>
    <TD align=left width="16%">707,547 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Judith L. Ganz Trust UA 04-23-2015 </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">235,849 </TD>
    <TD align=left width="16%">707,547 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Fidelity Management Trust Company FBO Paul Jensen (7) </TD>
    <TD align=left width="16%">943,396 </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">1,415,094 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Geoffrey S. Bradshaw- Mack </TD>
    <TD align=left width="16%">1,886,792 </TD>
    <TD align=left width="16%">943,396 </TD>
    <TD align=left width="16%">2,830,188 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>John M. Kern and Susan P. Kern </TD>
    <TD align=left width="16%">472,000 </TD>
    <TD align=left width="16%">236,000 </TD>
    <TD align=left width="16%">708,000 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Douglas L. Newhouse </TD>
    <TD align=left width="16%">943,396 </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">1,415,094 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Colin J. Markley and Nancy S. Markley Family Trust DTD
      12/14/93 </TD>
    <TD align=left width="16%">2,358,490 </TD>
    <TD align=left width="16%">1,179,245 </TD>
    <TD align=left width="16%">3,537,736 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Natgun Partners </TD>
    <TD align=left width="16%">943,396 </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">1,415,094 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Trade Winds Financial, LLC </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">235,849 </TD>
    <TD align=left width="16%">707,547 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Michael H. Glick and Susan Glick </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">235,849 </TD>
    <TD align=left width="16%">707,547 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Keith Abell </TD>
    <TD align=left width="16%">235,850 </TD>
    <TD align=left width="16%">117,925 </TD>
    <TD align=left width="16%">353,774 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Daniel Aron </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">235,849 </TD>
    <TD align=left width="16%">707,547 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Ethel S. Levantin </TD>
    <TD align=left width="16%">235,850 </TD>
    <TD align=left width="16%">117,925 </TD>
    <TD align=left width="16%">353,774 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Jeffrey William Benton </TD>
    <TD align=left width="16%">235,000 </TD>
    <TD align=left width="16%">117,500 </TD>
    <TD align=left width="16%">352,500 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>LegendCap Opportunity Fund LLC </TD>
    <TD align=left width="16%">330,000 </TD>
    <TD align=left width="16%">165,000 </TD>
    <TD align=left width="16%">495,000 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>David S. Nagelberg 2003 Revocable Trust </TD>
    <TD align=left width="16%">471,000 </TD>
    <TD align=left width="16%">235,500 </TD>
    <TD align=left width="16%">706,500 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Matthew Hayden </TD>
    <TD align=left width="16%">235,850 </TD>
    <TD align=left width="16%">117,925 </TD>
    <TD align=left width="16%">353,774 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>Jeff Kobylarz </TD>
    <TD align=left width="16%">283,020 </TD>
    <TD align=left width="16%">141,510 </TD>
    <TD align=left width="16%">424,529 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR></TABLE></DIV>
<P align=center>10 </P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD vAlign=bottom noWrap align=left><B>Name of Investor</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><B>Shares
      Owned</B> <BR><B>prior to</B> <BR><B>offering (1)</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><B>Warrants</B>
      <BR><B>Issued (2)</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><B>Shares to
      be</B> <BR><B>sold in this</B> <BR><B>offering</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><B>Share</B>
      <BR><B>ownership</B> <BR><B>after offering</B> <BR><B>(3)</B> </TD>
    <TD vAlign=bottom noWrap align=left width="16%"><BR><B>Percentage</B> <BR><B>ownership after</B> <BR><B>offering
      (4)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Intracoastal Capital, LLC </TD>
    <TD align=left width="16%">471,698 </TD>
    <TD align=left width="16%">235,849 </TD>
    <TD align=left width="16%">707,547 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR>
  <TR vAlign=top>
    <TD align=left>J Streicher Capital, LLC </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">572,354 </TD>
    <TD align=left width="16%">572,354 </TD>
    <TD align=left width="16%">0 </TD>
    <TD align=left width="16%">0.00% </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Includes Shares of Common Stock issuable under warrants and options exercisable within 60 days
      excluding Warrents issued in the Private Placement.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Includes only Shares of Common Stock issuable under
      Warrents issued in the Private
      Placement.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Assumes full exercise of  Warrants.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>Based on 93,861,054 outstanding shares of common stock as
      of March 28, 2018 and assumes sale of all Shares offered by this
      prospectus.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(5) </TD>
    <TD>
      <P align=justify>Bryan Ganz, the Chairman of the Board of the Company,
      owns and controls Northeast Industrial Partners, LLC.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(6) </TD>
    <TD>
      <P align=justify>Donald A. Levantin serves as a director on the Company&#146;s
      Board. Includes Shares of Common Stock issuable under 99,667 options held by  Donald A. Levantin.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(7) </TD>
    <TD>
      <P align=justify>Paul Jensen is the President and Chief Operating Officer
      of the Company.</P></TD></TR></TABLE>

</BODY>

</HTML>
<P align=center>11 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify style="text-indent:10%">The controlling persons of the
non-individual selling shareholders are: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD noWrap align=left><B>Name of Shareholder</B> </TD>
    <TD noWrap align=left width="50%"><B>Controlling Person</B> </TD></TR>
  <TR>
    <TD noWrap>&nbsp; </TD>
    <TD noWrap width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Alan and Amy Meltzer Family Foundation </TD>
    <TD align=left width="50%" bgColor=#e6efff>Alan and Amy Meltzer </TD></TR>
  <TR vAlign=top>
    <TD align=left>Alan L. Meltzer 2012 GRAT </TD>
    <TD align=left width="50%">Alan Meltzer </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Northeast Industrial Partners, LLC </TD>
    <TD align=left width="50%" bgColor=#e6efff>Bryan Ganz </TD></TR>
  <TR vAlign=top>
    <TD align=left>REF Securities &amp; Co. LP </TD>
    <TD align=left width="50%">Rodd Friedman </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Judith L. Ganz Trust UA 04-23-2015 </TD>
    <TD align=left width="50%" bgColor=#e6efff>Judith Ganz </TD></TR>
  <TR vAlign=top>
    <TD align=left>LegendCap Opportunity Fund LLC </TD>
    <TD align=left width="50%">Evan Greenberg </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Intracoastal Capital, LLC </TD>
    <TD align=left width="50%" bgColor=#e6efff>Keith Goodman </TD></TR>
  <TR vAlign=top>
    <TD align=left>Natgun Partners </TD>
    <TD align=left width="50%">Charles E. Crowley </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Trade Winds Financial, LLC </TD>
    <TD align=left width="50%" bgColor=#e6efff>John C. Howe </TD></TR>
  <TR vAlign=top>
    <TD align=left>Doug Lipton and Lucia Smith JTWROS </TD>
    <TD align=left width="50%">Doug Lipton and Lucia Smith
  </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Ganz 1997 Trust </TD>
    <TD align=left width="50%" bgColor=#e6efff>Neil Ganz </TD></TR>
  <TR vAlign=top>
    <TD align=left>Colin J. Markley and Nancy S. Markley
      Family Trust DTD </TD>
    <TD align=left width="50%">Colin Markley </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>12/14/93 </TD>
    <TD align=left width="50%" bgColor=#e6efff>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>David S. Nagelberg 2003 Revocable Trust </TD>
    <TD align=left width="50%">David Nagelberg </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Fidelity Management Trust Company FBO Paul
      Jensen </TD>
    <TD align=left width="50%" bgColor=#e6efff>Paul Jensen
</TD></TR></TABLE>
<P align=justify style="text-indent:10%">Donald Levantin and Bryan Ganz
are each one of our directors. Bryan Ganz is (i) related to Neil Ganz (the
Controlling Person of the Ganz 1997 Trust), (ii) related to Judith Ganz (the
Controlling Person of the Judith L. Ganz Trust UA 04-23-2015), and (iii) owns
and controls Northeast Industrial Partners, LLC. Donald Levantin is related to
Ethel Levantin. Paul Jensen is one of our officers. With the exception of the
foregoing individuals, no selling shareholder has, or had, any material
relationship with us or our officers or directors. </P>
<p class="m6629614064225065349m2783599857176608884msoplaintext" style="text-align: justify; text-indent: 10%">
Mitchell P. Kopin (&#147;<b>Mr. Kopin</b>&#148;) and Daniel B. Asher (&#147;<b>Mr. Asher</b>&#148;),
each of whom are managers of Intracoastal Capital LLC (&#147;<b>Intracoastal</b>&#148;),
have shared voting control and investment discretion over the securities
reported herein that are held by Intracoastal. As a result, each of Mr. Kopin
and Mr. Asher may be deemed to have beneficial ownership (as determined under
Section 13(d) of the Securities Exchange Act of 1934, as amended) of the
securities reported herein that are held by Intracoastal.</p>
<P align=justify style="text-indent:10%">To our knowledge, no selling
shareholder except Doug Lipton, Rod Friedman and the Agent is affiliated with a
securities broker. </P>
<P align=center>12 </P>
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<P align=center><B>PLAN OF DISTRIBUTION </B></P>
<P align=justify style="text-indent:10%">The selling shareholders,
including their transferees, donees, pledgees, assignees and
successors-in-interest, may sell, transfer or otherwise dispose of any or all of
the Shares offered by this prospectus from time to time on the TSXV, the OTC
Bulletin Board or any other stock exchange, market or trading facility on which
the shares are traded or in private transactions. These dispositions may be at
fixed prices, at market prices prevailing at the time of sale, at prices related
to prevailing market price or at negotiated prices. The selling shareholders may
use any one or more of the following methods when selling shares: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>ordinary brokerage transactions and transactions in which
      the broker-dealer solicits purchasers; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>block trades in which the broker-dealer will attempt to
      sell the shares as agent but may position and resell a portion of the
      block as principal to facilitate the transaction; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>purchases by a broker-dealer as principal and resale by
      the broker-dealer for its account; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>an exchange distribution in accordance with the rules of
      the applicable exchange; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>privately negotiated transactions; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>broker-dealers may agree with the selling shareholder to
      sell a specified number of such shares at a stipulated price per share;
      </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>a combination of any such methods of sale; </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>through the writing or settlement of options or other
      hedging transactions, whether through an options exchange or otherwise; or
      </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&nbsp;</TD>
    <TD align=left width="90%"></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="5%" >&#149; </TD>
    <TD align=left width="90%">
      <P align=justify>any other method permitted pursuant to applicable law.
      </P></TD></TR></TABLE>
<P align=justify style="text-indent:10%">In completing sales, brokers or
dealers engaged by the selling shareholders may arrange for other brokers or
dealers to participate. Brokers or dealers may receive commissions or discounts
from selling shareholders in amounts to be negotiated. As to any particular
broker-dealer, this compensation might be in excess of customary commissions.
Neither we nor the selling shareholders can presently estimate the amount of
such compensation. </P>
<P align=justify style="text-indent:10%">The selling shareholders and any
broker-dealers who act in connection with the sale of their securities may be
deemed to be &#147;underwriters&#148; within the meaning of &#167;2(11) of the Securities Act
of 1933, as amended (the &#147;Securities Act&#148;), and any commissions received by them
and any profit on any resale of the securities as principal might be deemed to
be underwriting discounts and commissions under the Securities Act. </P>
<P align=justify style="text-indent:10%">If any selling shareholder enters
into an agreement to sell his or her securities to a broker-dealer as principal,
and the broker-dealer is acting as an underwriter, we will file a post-effective
amendment to the registration statement, of which this prospectus is a part,
identifying the broker-dealer, providing required information concerning the
plan of distribution, and otherwise revising the disclosures in this prospectus
as needed. We will also file the agreement between the selling shareholder and the broker-dealer as an
exhibit to the post-effective amendment to the registration statement. </P>
<P align=center>13 </P>
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<P align=justify style="text-indent:10%">The selling shareholders may also
sell their shares pursuant to Rule 144 under the Securities Act. </P>
<P align=justify style="text-indent:10%">We agreed to file the
registration statement no later than March 28, 2018 and to use commercially
reasonable efforts to cause such registration statement to become effective 150
days following the date the registration statement is filed with the SEC, and to
keep such registration statement effective for a period of one year or for such
shorter period ending on the earlier to occur of (i) the date as of which all of
the selling shareholders may sell all of the securities registered under this
registration statement without restriction pursuant to Rule 144 under the
Securities Act (or any successor rule thereto) or (ii) the date when all of the
securities registered hereunder shall have been sold. </P>
<P align=justify style="text-indent:10%">We have advised the selling
shareholders that they, and any securities broker-dealers or others who sell the
Shares on behalf of the selling shareholders, may be deemed to be statutory
underwriters and will be subject to the prospectus delivery requirements under
the Securities Act. We have also advised each selling shareholder that in the
event of a &#147;distribution&#148; of the securities owned by the selling shareholder,
the selling shareholder, any &#147;affiliated purchasers&#148;, and any broker-dealer or
other person who participates in the distribution may be subject to Rule 102 of
Regulation M under the Securities Exchange Act of 1934, as amended (&#147;1934 Act&#148;)
until their participation in that distribution is completed. Rule 102 makes it
unlawful for any person who is participating in a distribution to bid for or
purchase securities of the same class as is the subject of the distribution. A
&#147;distribution&#148; is defined in Rule 102 as an offering of securities &#147;that is
distinguished from ordinary trading transactions by the magnitude of the
offering and the presence of special selling efforts and selling methods&#148;. We
have also advised the selling shareholders that Rule 101 of Regulation M under
the 1934 Act prohibits any &#147;stabilizing bid&#148; or &#147;stabilizing purchase&#148; for the
purpose of pegging, fixing or stabilizing the price of the Shares in connection
with this offering. </P>
<P align=center>14 </P>
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<P align=center><B>AVAILABLE INFORMATION</B> </P>
<P align=justify style="text-indent:10%">We have filed with the SEC a
Registration Statement on Form S-1 (together with all amendments and exhibits)
under the Securities Act with respect to the securities offered by this
prospectus. This prospectus does not contain all of the information in the
Registration Statement, certain parts of which are omitted in accordance with
the rules and regulations of the SEC. For further information, reference is made
to the Registration Statement which may be read and copied at the Commission&#146;s
Public Reference Room. </P>
<P align=justify style="text-indent:10%">We are subject to the
requirements of the l934 Act and are required to file reports and other
information with the SEC. Copies of any such reports and other information
(which includes our financial statements) filed by us can be read and copied at
the SEC&#146;s Public Reference Room. </P>
<P align=justify style="text-indent:10%">The public may obtain information
on the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. The Public Reference Room is located at 100 F. Street, N.E.,
Washington, D.C. 20549. </P>
<P align=justify style="text-indent:10%">Our Registration Statement and
all reports and other information we file with the SEC are available at
www.sec.gov, the website of the SEC. </P>
<P align=justify style="text-indent:10%">No dealer, salesperson or other
person has been authorized to give any information or to make any representation
not contained in this prospectus, and if given or made, such information or
representations must not be relied upon as having been authorized by the
Company. This prospectus does not constitute an offer to sell, or a solicitation
of an offer to buy, any of the securities offered in any jurisdiction to any
person to whom it is unlawful to make an offer by means of this prospectus. The
information contained in this prospectus is accurate only as of the date of this
prospectus, even though this prospectus may be delivered or shares may be sold
under this prospectus on a later date.</P>
<P align=center>15 </P>
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