Edmonton, Alberta CANADA - June 14, 2011 (InvestorIdeas.com Newswire) - F.V.Ramsoondar, Chief Executive Officer of United Protection Security Group Inc. (UPSG or the Company), (TSX-V:UZZ) is pleased to announce that the Company has executed a Purchase Agreement with an Edmonton based Video Verification Security Systems company ("the Target").
The Company will acquire certain assets of the Target, which includes a customer list, and all of the equipment from its monitoring station for a consideration that will be calculated based on seventy percent (70%) times twenty four (24) times monthly revenue. The Company estimates that the purchase price will be approximately $330,000. The purchase price is subject to a possible downward adjustment on each of September 1, 2012 and September 13, 2013 by applying the above mentioned purchase price formula to the two months prior to the adjustment date. All calculation of monthly revenue shall be made and taken only in respect of the customers and video monitoring revenues of the Target on the closing date of the transaction.
Payment of the purchase price will be settled by the issuance of common shares of the Company at a price of six cents ($0.06) per common share to be issued to the Target as to: one third (1/3) on closing; one third (1/3) on September 1, 2012; and (1/3) on September 1, 2013. The target may also receive a bonus based on 50% of the gross margin on sales to certain designated accounts during the first year, to be paid by issuing shares at $0.10 per share. This transaction is schedule to close July 1, 2011.
Mr. Ramsoondar states, "This acquisition will give the Company the momentum required to continue to build its Electronic Security Segment and become one of the leaders in delivering specialized Electronic Security Nationally."
The transaction is subject to the Company conducting satisfactory due diligence, board of director approval and TSX Venture Exchange approval.
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.
For additional investor and media relations inquiries contact:
Fredy Ramsoondar CEO and Director
Email: fredy.ramsoondar@unitedprotection.com
Tel: 780-465-8101
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.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/united06092011.htm
United Protection Security Group Inc.
#212, 8711A - 50th Street
Edmonton, Alberta T6B 1E7
Telephone (780) 465-8101
Source: United Protection Security Group Inc. (TSX-V: UZZ) http://www.unitedprotection.com
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