VANCOUVER, British Columbia, March 15, 2017 (GLOBE NEWSWIRE) -- Urban Communications Inc. (TSX-V: UBN ) is pleased to announce that, subject to regulatory approval, the Company has closed the first tranche of a non-brokered private placement announced March 6, 2017, raising $725,500.50. The TSX Venture Exchange initially gave conditional approval for the Company to raise $500,000, and then to increase the financing to $1,500,000 based upon demand, and the Company will continue through a second tranche in order to raise additional equity capital.
The Company will issue 10,364,293 units at a price of $0.07 per Unit. Each Unit is comprised of one common share and one common share purchase warrant which will entitle the holder to purchase one common share for $0.12 within 24 months from the closing date. The funds raised will be used for working capital during the next 12 months. Management has participated in the private placement to the extent of $96,500.50.
A finder’s fee of 7.0% 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 to purchase shares for $0.07 within 24 months from the closing date 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 month hold period and may not be traded in British Columbia until July 17, 2017, 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 July 17, 2017.
ABOUT URBAN COMMUNICATIONS INC.
Urban Communications Inc. (TSX-V: UBN ) is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its 300 km. state-of-the-art carrier grade fibre optic network in Metro Vancouver and Victoria to commercial, residential and public sector customers. Urban has recently launched high-speed Internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps).
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.
CONTACT INFO: John Farlinger, Chief Executive Officer Phone: (604) 763-7565 jafarlinger@urbanfibre.ca
