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.