Urbanfund Corp.
TSX VENTURE : UFC

January 16, 2008 09:42 ET

Urbanfund Corp. Prices Private Placement of Common Shares

TORONTO, ONTARIO--(Marketwire - Jan. 16, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO US NEWSWIRE SERVICES

Urbanfund Corp. ("Urbanfund") (TSX VENTURE:UFC) announced today that it has determined the terms of its previously-announced offering (the "Offering") of common shares (the "Shares") for gross proceeds of up to $10,000,000. The Offering will be priced at $0.30 per Share. The Offering is being placed on a best efforts, private placement basis by a syndicate of agents led by Blackmont Capital Inc. and including M Partners Inc. and Dundee Securities Corporation (collectively, the "Agents").

It is anticipated that certain Urbanfund insiders will be subscribing for Shares at the same price pursuant to the Offering to the maximum extent permissible pursuant to applicable securities law and the policies of the TSX Venture Exchange.

The Offering is anticipated to close on or about February 6, 2008. The Shares will be subject to resale restrictions for a period of four months and a day from the closing date under applicable securities legislation. Completion of the Offering will be subject to a number of conditions including the approval of the TSX Venture Exchange.

Urbanfund intends to use the net proceeds of the Offering to acquire North Front Centre in Belleville, Ontario and Wonderland Plaza in London (the "Proposed Acquisitions"), and for working capital and general corporate purposes. The closing of the Offering is not conditional upon the closing of the Proposed Acquisitions and there can be no assurance that Urbanfund will close these acquisitions.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward Looking Statements

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to Urbanfund. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in Urbanfund's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included herein are made as of the date hereof and Urbanfund does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Urbanfund Corp.
    Mr. Mitchell Cohen
    President and Chief Executive Officer
    (416) 361-5000 ext. 225