I think it is a case of someone having a product already, and trying to market it for something else. There have been a few companies developing products as a result of school shootings, and this seems like one of them from the description of the pad/blanket. It is certainly not cost effective, and not very helpful for a tornado. Bullet resistant materials are not generally so resistant to punctures and they do not offer much padding by themselves. From what I know of tornadoes, blunt force trauma is the most common cause of death, not fast flying objects so much. At that price you could build many suitable shelters for an entire school.

I cant see this being of much use.
A blanket or similar can not stop someone being killed if heavy debris falls on them.If a heavy roof beam for example falls, it is liable to crush the victim to death, and no flexible "shelter" would save them.
Neither can it stop the victim being picked up by the wind and subsequently being thrown with lethal force against structures or the ground. Indeed this product might Increase the risk by acting as a wind sail or kite.

It would give some protection against small fast moving projectiles, not just bullets, but also broken glass etc.
If protection against a mad gunman is in fact the main idea, then as others post "shoot me red" is not a good choice.

A proper tornado shelter should also last many years without significant furthur expense. These blankets will get lost, stolen, used for other purposes, and presumably require periodic replacement at significant expense.
After a few years without a tornado, I have little faith in the blankets actualy being on hand for instant use when needed.

This is the country that invented "duck and cover" as a system to prevent injury to schoolchildren in the event of thermonuclear explosions. Do not dismiss the marketability of a tornado blanket in such an environment.

In both cases, it would be equally useful to issue a body bag to each student, labelled as "safety cocoon", and schedule monthly cocoon-donning drills.

Sounds like a scam to get to some hapless school official to waste some federal grant money.