VANCOUVER, British Columbia, June 02, 2017 (GLOBE NEWSWIRE) -- Urban Communications Inc. (TSX-V: UBN ) is pleased to announce that, subject to regulatory approval, the Company has closed the third and final tranche of a non-brokered private placement announced March 6, 2017, raising an additional $375,000 for a total of $1,338,000. The TSX Venture Exchange initially gave conditional approval for the Company to raise $500,000, and then to increase the financing to up to $1,500,000. On May 1, 2017, the TSX Venture Exchange granted an extension to close this tranche not later than June 2, 2017.
The Company will issue 5,357,621 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 6 months.
Finder’s fees of between 7% and 8% of the proceeds received by the Company from investors introduced by the finder, and non-transferrable finders warrants to purchase shares equal to between 7% and 8% of the number of Units issued by the Company to those investors for prices between $0.12 within 24 months and $0.132 within 48 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 October 4, 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 October 4, 2017.
The Company also announces the granting of 500,000 incentive stock options to directors of the Company in accordance with the Company’s incentive stock option plan and policies established by the board of directors designed to attract, retain and motivate industry, business, finance, sales and technical professionals at all levels. The options are exercisable at $0.065 until May 1, 2020.
ABOUT URBAN COMMUNICATIONS INC.
Urban Communications Inc. (TSX-V: UBN ) one of the country’s first telecommunications company to deliver Gigabit Internet service to the home, provides 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.
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
