(TSX - V: UZZ)
EDMONTON, Oct. 16, 2012 /CNW/ - F.V.Ramsoondar, President, Chief Executive Officer and Director of United Protection Security Group Inc. (UPSG or the Company), (TSXV: UZZ) is pleased to announce the following update:
The Company has entered into a Letter of Intent to purchase an Ontario based Underwriters Laboratories of Canada (ULC) rated Burglar Alarm Monitoring Station with recurring monthly revenue (RMR) in excess of $40K per month and a total annual revenue base including installation in excess of $550K with net profit in excess of $200K per year.
The Purchase Price will be $850K with $680K payable on or before November 15, 2012, the closing date, and the balance of the purchase price financed by way of two vendor financing notes of $85K each, payable six months after the closing date and twelve months after closing date. Both vendor-financing notes are subject to purchase price adjustments.
Under the final purchase agreement, UPSG will acquire all customer accounts and alarm-monitoring equipment and facilities. The purchase will add approximately 5,000 customers to UPSG's existing alarm customer base.
F.Ramsoondar states: "This is a positive arrangement for all concerned as customers will be uninterrupted as UPSG takes over their alarm monitoring services. We will continue to focus on building the Company's RMR through organic and acquisition growth."
Pursuant to a press release dated November 17, 2011, the Company appointed Mr. Ray Wilderman as Vice President of Alarm Monitoring and Intelligent Video Analytics Systems. Mr. Wilderman was an Executive Manager with VOXCOM Security Systems for over 10 years; during his tenure there, VOXCOM grew to be the fourth largest Alarm Monitoring Security Company in Canada and was independently ranked as one of the fastest growing companies in Canada, servicing over 100,000 customers.
The transaction is subject to satisfactory due diligence and adequate financing.
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Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks related to business development and retention, and risks related to the current economic and credit conditions. As a result, actual results may vary materially from those described in the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: United Protection Security Group Inc.
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Fredy Ramsoondar CEO and Director