Vancouver, BC – Urban Communications Inc. (TSX-V:UBN) is pleased to announce that, subject to regulatory approval, the Company has closed the second tranche of a non-brokered private placement, raising $477,650, and the Company will issue 4,776,500 Units at a price of $0.10 per Unit. The funds raised will be used for capital projects and working capital during the next 6 months. The private placement was initially announced on January 5, 2016, indicating an intention to raise $750,000, and through the two tranches the private placement has been oversubscribed by $402,650.
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 $0.20 within 24 months from the closing date.
A finder’s fee of $28,000, being 7.0% of the proceeds received by the Company from investors introduced by the finder, and 280,000 non-transferrable finders warrants to purchase shares for $0.20 within 24 months from the closing date, being 7% of the number of shares issued to those investors, will be paid to eligible agents in connection with the financing.
The Company also announces that since July 3, 2015, it has issued a total of 2,930,000 incentive stock options to directors, employees and consultants, of which 300,000 were issued to directors on July 3, 2015, 650,000 on November 12, 2015, and 420,000 on February 3, 2016.
ABOUT URBAN COMMUNICATIONS INC.
Urban Communications Inc. (TSX VENTURE: UBN) is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its 200 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).
Chief Executive Officer
Phone: (604) ) 763-7565
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