Safeguard heads down public path
REDONDO BEACH, Calif.--Safeguard Technology International, a small residential security company that caters to the ultra-high-end Sunset Boulevard set, recently received $1 million in equity financing from Rocky Point, N.Y.-based SG Martin Securities. This will enable four-year-old Safeguard to become public, expand its product line, and consider acquisitions.
Under the agreement, announced Oct. 24, SG Martin will file with the National Association of Security Dealers to qualify Safeguard for trading on the OTC-Pink Sheets market.
Safeguard Technology is a "portfolio company" of CorpHQ. Located here, CorpHQ provides financing and management to promising companies, explained Steve Crane, chief executive officer of CorpHQ,
CorpHQ initially funded Safeguard Technology. As the company has grown, CorpHQ has had less financial commitment to the company, but still acts as a financial advisor.
Safeguard reported in November that third quarter revenue increased 206-percent, from $75,731 in 2004 to $231,512, compared against the same period last year. Net income in the third quarter of 2005 was $53,813, compared to a loss of $82,081 for the same period in 2004.
CorpHQ has six portfolio companies; none of the others are in the security industry. Safeguard is the first to go public.
"We're taking the company from concept to a small publicly traded company. This is a very big day for us," Crane said.
For more on this story, see the December issue of Security Systems News.