SOURCE: Urban Communications Inc.

Urban Communications Inc.

October 19, 2015 08:30 ET

Urban Communications Inc. Announces Closing of First Tranche of Private Placement

VANCOUVER, BC--(Marketwired - October 19, 2015) - Urban Communications Inc. (TSX VENTURE: UBN) is pleased to announce that, subject to regulatory approval, the Company has closed the first tranche of a non-brokered private placement, raising $850,200, and the Company will issue 8,502,000 Units at a price of $0.10 per Unit. The funds raised will be used for capital projects and working capital during the next 12 months. Management has participated in the private placement to the extent of $78,000.

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 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 $0.20 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 February 21, 2016, 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 February 21, 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 state-of-the-art carrier grade fibre optic network to commercial, residential and public sector customers. The Company's 200 km. fibre optic network spans metro Vancouver and Victoria and has a potential serviceable market size of 850,000 residential units and 80,000 commercial enterprises. Urban recently launched its high-speed Internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps) and has plans to grow to 2,000 residential subscribers in addition to several hundred commercial subscribers by the end of 2015.

Neither the 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.

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