VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 02/26/15 — Urban Communications Inc. (TSX VENTURE: UBN)(“Urban” or the “Company”) announces that on February 19, 2015, the TSX Venture Exchange accepted for filing documentation with respect to the private placement (the “Financing”) announced February 5, 2015, for 13,000,000 Units at a price of $0.10 per Unit and granted conditional approval for the placement. On February 25, 2015, the TSX Venture Exchange gave final approval for the first tranche of the private placement, which has raised $957,500. The Company is making continuing efforts to close the balance of the placement of $342,500.
The funds raised have been allocated for expansion capital during the next 12 months. Certain directors and officers have agreed to sell shares in the market and to use the proceeds for the purpose of subscribing for shares in the Financing.
Each Unit of the Financing is comprised of one common share and one-half share purchase warrant, and two one-half warrants will entitle the holder to purchase one warrant share for $0.20 within 18 months from the closing date. The Company will issue a further news release announcing the respective closing and statutory hold dates.
A finder–s fee of 7% of the proceeds received by the Company from investors introduced by the finder, and non-transferrable finders warrants equal to 7% of the proceeds received by the Company payable in units on the same terms as the offering, will be paid to eligible agents in connection with the Financing.
All securities issued pursuant to the Financing will be subject to a statutory four months hold period and may not be traded in British Columbia until June 25, 2015, except as permitted by the British Columbia Securities Act and Regulations made thereunder. In addition, without prior written approval of the TSX Venture Exchange and compliance with all applicable securities legislation, the shares may not be sold, transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until June 25, 2015.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ABOUT URBAN COMMUNICATIONS INC.
Urban Communications Inc. (TSX VENTURE: UBN), through its operating subsidiaries, is a telecommunications company providing a full suite of internet, voice, video and broadband application products over its state-of-the-art carrier grade fibre optic network to commercial, residential and public sector customers. The Company–s 200km fibre optic network spans from metro Vancouver to Victoria and has a potential serviceable market size of 850,000 residential units and 80,000 commercial entities. Urban Communications recently launched its high-speed internet service to residential and commercial subscribers at 1,000 mbps (1GB) and plans to grow to 2,000 residential subscribers in addition to several hundred commercial subscribers by the end of 2015.
Contacts:
Urban Communications Inc.
John Farlinger
Chief Executive Officer
(604) 763-7565
Urban Communications Inc.
Elina Chow
Director, Investor Relations
(416) 845-8495
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