(TSX - V: UZZ)
EDMONTON, April 26, 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:
Pursuant to a press release dated April 19, 2012, The Company has executed an agreement with an Ontario-based Physical Security Guard company (the Target) with annual revenue in excess of $7 million. The effective date of the transaction is May 1, 2012.
Under the agreement, the Company will take over the Operations of the Target including but not limited to recognition of revenue and cost of sales.
The Company will have up to two years commencing May 1, 2012 before entering into a Definitive Purchase Agreement ("DPA") to purchase the shares or assets of the Target for a price not to exceed $3,250,000. Upon execution of the DPA, the annualized revenue must not be less that $7,000,000 and annualized earnings before interest, taxes, depreciation and amortization ("EBITDA") must not be less that 8% of annualized revenue from the Operations.
During the two-year period, the Company will share profits under this agreement with the Target, the profits will be included in the enterprise value calculation of the Target.
F. Ramsoondar stated: "Finding creative ways of growing revenue and expanding geographically will continue to be my focus. This addition will now create the platform to aggressively grow in Eastern Canada".
The Company's current annual revenue run-rate will now exceed $43 million.
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.