The money was part of the sale of a Zuni subsidiary and no claims have been made against the amount, the Ottawa company said in a statement.
"This is essentially equity capital we will use to finance and grow the business," stated chief executive Doug Lucky.
PSP will use the money to pay down debt, and for other corporate purposes.
The soft-armour maker has been operating under a forebearance for the better part of a year. Last week, it won a nearly $500,000 contract for "protective products" from the Department of National Defence through a competitive tender.
PSP's Q3 net losses increased to $140,687, or 0.2 cents per share, from $87,378 or 0.3 cents per share a year earlier. PSP has said the losses were on the back of a gross margin reduction and increased debenture interest expense.
The company used to be based on the West Coast, and moved to Ottawa to be closer to its competitors. Following the move, the company found itself struggling in red ink.