(TSX - V: UZZ)
EDMONTON, March 23, 2012 /PRNewswire/ - F.V.Ramsoondar, Chief Executive Officer and Director of United Protection Security Group Inc. (UPSG or the Company), (TSX-V: UZZ) announces the following update:
In a May 19, 2010 dated news release, the Company announced that it had completed a Business Development Agreement with NGNT Holdings Inc. dated May 18, 2010 wherein NGNT granted the Company the right to use NGNT's parking management system, including its Nogo Notow vehicle lock-down system, throughout Canada. Effective June 1, 2011, the Company transferred these rights to Mr. Sigurd Jorstad, the Chairman of the Board of Directors of the Company, and the President of United Parking Inc., a company controlled and owned by Mr. Jorstad. The transfer of the asset extinguishes an $80,000 loan payable by the Company to NGNT.
Pursuant to an interim agreement dated June 1, 2011, the Company has further loaned $237,000 to Mr.Jorstad and United Parking Inc. over the course of 2011. The loan will bears interest at seven (7) percent per annum, payable in interest only for 2012 and thereafter monthly blended interest and principal of $7,318 for a period of three years commencing January 31, 2013. The loan is secured by a pledge of 5,006,954 common shares of the Company, which is owned by Mr.Jorstad. If the loan is defaulted, the Company's management is empowered to sell the pledge shares to satisfy the loan.
No further loans will be provided to United Parking Inc. or Mr. Jorstad.
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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.