Edmonton, Alberta CANADA - October 24, 2011 (InvestorIdeas.com Newswire) - United Protection Security Group Inc. (TSX-V:UZZ Venture), 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 entered into a new receivables financing agreement with an international lender based in New York City. The new facility will allow the Company to pay out its existing lender and will also provide more working capital flexibility for planned growth.
The new facility limit will be $4.5M USD, compared to the $3M CAD limit the Company has with its current lender. The new facility does not impose any financial ratio covenants, and is secured by a corporate guarantee and also a by personal guarantee of the Chief Executive Officer of the Company. In consideration for the personal guarantee, the Company's board of directors has agreed to issue 8 million common shares at a price of $0.05 per share to Mr. Ramsoondar, subject to the closing of the transaction and approval of the TSX Venture Exchange. Upon the completion of this transaction Mr. Ramsoondar's shareholdings will exceed 15% of the total issued and outstanding shares of the Company.
The international lender also has term debt and equity financing facilities, which the Company will consider utilizing for its acquisition growth strategies.
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.
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.
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/united10242011.htm
United Protection Security Group Inc. (TSX - V: UZZ)
5909 - 83rd Street, Edmonton, Alberta T6E 3Y4
Telephone (780) 465-8101
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/unitedprotection09302011.htm
Source: United Protection Security Group Inc. (TSX-V: UZZ) http://www.unitedprotection.com
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