American Security Resources Corp. (ARSC)

[camalion]

ARSC Closes Funding to Propel Hydra to Production


Last update: 3:56 p.m. EST March 7, 2008

HOUSTON, Mar 07, 2008 (BUSINESS WIRE) --

3:58pm 03/07/2008

ARSC 0.03, 0.00, -3.4%) announced today that it has closed a $2,000,000 funding facility which will fund its Hydra Fuel Cell subsidiary to production of its proprietary HydraStax(TM) hydrogen fuel cells.
Jim Twedt, President of Hydra, said, "With this funding we hope to begin responding to the $2.5 million of purchase orders that we currently have."
Bob Farr, President of ARSC, explained, "This funding is from a private, Chicago-based firm, St. George Funding, which provided us with a series of convertible debentures that can be converted into our stock under Rule 144 restrictions. We felt strongly enough that this was the right funding deal for ARSC that, we, the officers of the Company have personally guaranteed it."
Farr continued, "To complete this funding required an increase in our authorized share capital which we have accomplished through the issuance of a "Super Voting Preferred" that provides an indemnification for the guarantors of the funding and assures that the covenants of the debentures will be met. We now have 500,000,000 authorized shares which gives us a lot of flexibility moving forward," Farr concluded