Service Systems Arranges Financing for Cdn$900,000
SERVICE SYSTEMS INTERNATIONAL, LTD.
FOR IMMEDIATE RELEASE
Contact: Investor Relations: 1-888-516-7766
e-mail: rrc@rrcomm.com
servicesystems.com
July 30, 1998
SERVICE SYSTEMS ARRANGES FINANCING FOR CDN $900,000
VANCOUVER, CANADA - SERVICE SYSTEMS INTERNATIONAL, Ltd. (OTC/BB: SVSY) announces that it has arranged for financing in the amount of CDN $900,000 for its majority owned company, UV Systems Technology, Inc. (UVST). The financing will be provided by The Working Opportunity Fund (WOF) of British Columbia, Canada. WOF is a labor sponsored Venture Capital fund owned by nearly 30,000 individual British Columbia shareholders. The fund has invested over $80 million in entrepreneurial high growth companies.
"We are pleased by the progress made by UVST", says David Levi, President and CEO of WOF. "We are impressed by the ability of UVST to sell its ultraviolet environmental technology both nationally and internationally."
The terms of the financing are:
1. A previously reached agreement with the Working Opportunity Fund (WOF) of British Columbia, and MDS Ventures Pacific Ltd. (MDS) dated December 7, 1996, which allowed SVSY to purchase the remaining 49.9% of UVST from WOF and MDS has been canceled by mutual agreement between all parties.
2. WOF agrees to provide the funding amount of CDN $900,000 as a loan, payable over five (5) years with interest payable monthly.
3. Accrued interest in the amount of approximately CDN $450,000 payable on previous demand loans from WOF and MDS to UVST has been canceled and the loans have been deferred from repayment for a period of five (5) years from the date of this agreement.
4. Service Systems International has agreed to convert its existing loan amount to CDN $1,288,103, and MDS Ventures Pacific has agreed to convert 50% of its Class "A" Preferred Shares to Class "X" Preferred shares. The Class X shares will be retractable within 4 years, subject to certain conditions.
Ken Fielding, CEO of Service Systems, states, "The proceeds of this funding will immediately bolster the marketing, manufacturing and deployment of UV Systems' products into the marketplace." Fielding also states, "The additional resources made available through this funding make it possible to pursue a wider range of opportunities more quickly and advance our position in the UV disinfection market."
Service Systems International, Ltd. through its subsidiary UV Systems, manufactures and markets UltraGuard(TM), a state-of-the-art, patented ultraviolet (UV) disinfection system for municipal liquid waste, process and industrial water, potable and other water resources.
**Certain of the foregoing information are foreword-looking statements regarding future events or the future financial performance of the company, and are subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the foreword-looking statements. Among such factors are: general business and economic conditions, customer acceptance of and demand for customer's products, the Company's overall ability to design, test, and introduce new and improved products on a timely basis, regulatory constraints, and the risk factors listed from time to time in documents filed by the Company with the SEC. |
