VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2011) - Urban Communications Inc. (TSX VENTURE:UBN) is pleased to announce that the agreement to sell a portion of its network assets to Rogers Communications Partnership has been completed. The agreement was first announced on March 10, 2011. This transaction represents a significant achievement by management to not only preserve value for shareholders when the Company has been on the verge of involuntary liquidation, but to also provide the foundation for growth and profitability in the future.
Funds raised by the transaction will be used to eliminate secured debt and to bring trade debt into current account and the balance will be used for working capital. The Company's strategy for the balance of 2011 is to immediately upgrade its electronic capability and initiate an aggressive program to acquire commercial and residential subscribers. Combined with the Company's fibre optic delivery system that has breadth of coverage throughout metro Vancouver and Victoria, the Company will provide industry best data transfer speeds and superb entertainment products to a focussed target market.
Management's objective is to create a predictable and ever increasing rate of subscriber acquisition and profitability, and when this begins to be reflected on published financial statements, to increase both our market capitalization and stock liquidity. The Company will provide the market with regular progress reports as the sales initiative progresses.
Except for historical information contained herein, the statements in this news release contain or may contain forward-looking statements, such as statements regarding Urban Communications Inc.'s future growth and profitability, growth strategy and anticipated trends in the industries in which Urban Communications Inc. operates. These forward-looking statements are based on Urban Communications Inc.'s current expectations and are subject to a number of risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward-looking statements made by Urban Communications Inc. in this news release. These risks and uncertainties include, among other things, raising significant investment capital, locating and retaining senior technical and financial expertise, customer loyalty, demand for services, market competition and other risks detailed in documents filed with the TSX Venture Exchange or British Columbia Securities Commission. Urban Communications Inc. does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.
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.