Service Systems Arranges Financing for CDN$900,000.VANCOUVER, British Columbia--(BUSINESS WIRE)--July 30, 1998-- Service Systems International Ltd. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:SVSY) announced that it has arranged for financing in the amount of CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $900,000 for its majority owned company, UV Systems Technology Inc. (UVST UVST Universal Voice Station (Honeywell) ). The financing will be provided by The Working Opportunity Fund (WOF) of British Columbia. WOF is a labor-sponsored Venture Capital fund owned by nearly 30,000 individual British Columbia shareholders. The fund has invested more than $80 million in entrepreneurial high-growth companies. "We are pleased by the progress made by UVST," said David Levi, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 WOF of British Columbia and MDS MDS, n See temporomandibular pain-dysfunction syndrome. MDS 1 Maternal deprivation syndrome, see there 2 Myelodysplastic syndrome, see there Ventures Pacific Ltd. (MDS) dated Dec. 7, 1996, which allowed SVSY to purchase the remaining 49.9 percent 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 Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. 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 percent of its Class "A" preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. 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, stated: "The proceeds of this funding will immediately bolster the marketing, manufacturing and deployment of UV Systems' products into the marketplace. 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 disinfection, n the process of destroying pathogenic organisms or rendering them inert. disinfection, full oral cavity, n a procedure used to reduce active periodontal disease, usually completed within a certain short time frame. market." Service Systems International, through its subsidiary UV Systems, manufactures and markets UltraGuard, a state-of-the-art, patented ultraviolet (UV) disinfection system for municipal liquid waste, process and industrial water, potable potable /pot·a·ble/ (po´tah-b'l) fit to drink. po·ta·ble adj. Fit to drink; drinkable. potable fit to drink. and other water resources. Certain of the foregoing information are forward-looking statements regarding future events or the future financial performance of the company, and are subject to a number of risks and other factors that could cause the actual results to differ materially from those contained in the forward-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. CONTACT: Service Systems International Ltd. Steve Stakiw, 888/516-7766 (investor relations) rrc@rrcomm.com (e-mail) www.servicesystems.com |
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