EDMONTON, Feb. 20, 2013 /CNW/ - L. Cunningham, Chairman of the Board of Directors' of United Protection Security Group Inc. (UPSG or the Company), (TSX-V: UZZ) is pleased to announce the following corporate update:
Further to a press release dated August 1, 2012 announcing that the Company has increased its financing facility from $4.5M USD to $7M USD, the Board of Directors has by a majority vote granted Mr. Ramsoondar, President and CEO of the Company 8 million shares of the Company at a deemed price of $0.05 per share and $50,000 in cash, by way of compensation for him guaranteeing the increase in the financing facility for the Company. Mr. Ramsoondar also has personally guaranteed a 5-year term-debt of the Company in the amount of $680K, which was used to fund an acquisition in 2012.
Prior to the approval by the Board of Directors, the Company appointed an independent law firm to review Mr. Ramsoondar's guarantee documents and have reconfirmed that the guarantees are enforceable against Mr. Ramsoondar by the Lender.
The overall personal exposure of Mr. Ramsoondar is $7.68M. The total compensation issued to Mr. Ramsoondar for his personal guarantees is 11.07%, under the TSX-Venture Exchange rules the Company was entitled to issue Mr. Ramsoondar up to 20% of the guarantee totals.
The transaction is subject to the approval of the TSX-Venture Exchange.
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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United Protection Security Group Inc. - Corporate Update
Feb 20, 2013, 04:31 EST