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.
Stock Awareness Activities
To find out more about United Protection Security Group Inc.
(TSX-V: UZZ), visit our website at www.unitedprotection.com.
To join the 'request for information', go to the web page
www.unitedprotection.com and click the tab 'request information'
and follow the prompts.
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.