Cobra StunLight Maker
Suspends US Operations
|Universal Guardian Holdings Inc. SEC Filing||FlashlightNews.org - 8/01/2007|
Comapny files notice with SEC for 'Costs Associated with Exit or Disposal Activities'
Universal Guardian's Cobra StunLight
NEWPORT BEACH, Ca. - On July 30, 2007, the board of directors of Universal Holdings decided to suspend US based operations in order to focus on growth and profitability within the Services Group. The Services Group has been and continues to be the principal source of the company's revenues. The suspension of operations eliminates significant overhead costs, thereby allowing the company to use existing resources for the Services Group. As part of this decision, Universal Holdings will lay-off or otherwise eliminate both operational and administrative staff for all U.S. based operations. The reduction in staffing will be completed immediately. We are unable at this time to make a good faith estimate of the costs associated with the suspension of operations, including contract termination and employee benefits.
In the longer term, Universal Holdings intends to reactivate US based operations. We are seeking to raise the additional capital required through the public or private sale of debt or equity securities, the procurement of advances on contracts or licenses, funding from joint-venture or strategic partners, debt financing or short-term loans, the sale of our operational groups, or a combination of the foregoing. We may also seek to satisfy indebtedness without any cash outlay through the private issuance of debt or equity securities.
Universal Holdings currently does not have any binding commitments for, or readily available sources of, additional financing. The company cannot give you any assurance that it will be able to secure the additional cash or working capital we may require to continue operations.
For more information, please visit the company's web site at www.austriamicrosystems.com.