VANCOUVER, British Columbia, April 11, 2017 (GLOBE NEWSWIRE) -- 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 announced March 6, 2017, raising an additional $237,350 for a total of $962,850. 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.
The Company will issue 3,390,714 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. A director has sold 2.1 million shares at $0.07 in the market in order to participate in this tranche to the extent of $147,000.
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 August 12, 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 August 12, 2017.
The Company also announces the granting of an aggregate of 3,097,632 incentive stock options to directors and employees 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. Of the total number of options granted, 1,097,632 options were granted to directors. Since October 31, 2016, 2,450,000 options have expired or been cancelled. All of the options are exercisable at $0.06 until March 21, 2020.
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.