EDMONTON, Nov. 16, 2012 /CNW/ - F.V.Ramsoondar, President, Chief Executive Officer and Director of United Protection Security Group Inc. (UPSG or the Company), (TSX-V: UZZ) is pleased to announce the following update:
Pursuant to a press release dated October 16, 2012, the Company has finalized the transaction with an Ontario-based Underwriters Laboratories of Canada (ULC) rated Burglar Alarm Monitoring Station with an effective closing date of November 14, 2012.
The Company previously reported the estimated monthly revenue (RMR) to be 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. Based on the due diligence conducted during the review period, the actual RMR is in excess of $60K per month.
The Purchase Price remained at $850K, with $640K paid on closing, $40K holdback for any contingent liabilities, 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.
The acquisition has added approximately 7,000 retail and wholesale customers to UPSG's existing alarm customer base. Management will continue to focus on building its RMR through dealer networks across Canada.
The Company will further over the next three months, merge its existing Video Monitoring Operations with the ULC station, which will result in an estimated cost savings of approximately $300K per year.
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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.