SOURCE: Urban Communications Inc.

Urban Communications Inc.

March 23, 2015 19:06 ET

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

VANCOUVER, BC--(Marketwired - March 23, 2015) - Urban Communications Inc. (TSX VENTURE: UBN) is pleased to announce that, subject to regulatory approval, the Company has closed the second tranche of a non-brokered private placement, raising $339,500, and the Company will issue 3,395,000 Units at a price of $0.10 per Unit. The first tranche of the private placement closed February 23, 2015, and raised $957,500, pursuant to which the Company issued 9,575,000 Units, bringing the total raised to $1,297,000. The funds raised have been allocated for expansion capital during the next 12 months.

Each Unit is comprised of one common share and one-half share purchase warrant, and two one-half warrants will entitle the holder to purchase one warrant share for $0.20 within 18 months from the closing date.

On February 19, 2015, the TSX Venture Exchange gave conditional approval to the private placement raising up to $1,300,000. Due to the success of the private placement, the Company has sought an increase in the authorized amount and the Exchange has given conditional approval to increase the authorized amount of the private placement to $1,500,000.

A finder's fee of 7.0% of the proceeds received by the Company on the second tranche from investors introduced by the finder, and non-transferrable finders warrants equal to 7% of the proceeds received by the Company payable in units on the same terms as the offering, 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 July 20, 2015, 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 July 20, 2015.

ABOUT URBAN COMMUNICATIONS INC.

Urban Communications Inc. (TSX VENTURE: UBN), through its operating subsidiaries, 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 entities. Urban recently launched its high-speed Internet service to residential and commercial subscribers at 1,000 Mbps (1Gbps) and has plans to grow to 2,000 residential subscribers in addition to several hundred commercial subscribers by the end of 2015.

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.

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