SOURCE: Urban Communications Inc.

Urban Communications Inc.

March 13, 2015 14:35 ET

Urban Communications Inc. Announces Convertible Debenture Private Placement to Replace Secured Debt

VANCOUVER, BC--(Marketwired - March 13, 2015) - Urban Communications Inc. (TSX VENTURE: UBN) announces that it has raised convertible debenture private placement financing carrying interest at 8% per annum to replace existing secured debt of approximately $199,000 carrying interest at 12% per annum.

The debenture is convertible into units of the Company at a price of $0.11 per unit until May 31, 2017. Each unit consists of one common share and one share purchase warrant, and each warrant is exercisable until May 31, 2017, to purchase one common share at $0.20. The debenture will carry a term expiring May 31, 2017, and proceeds will be secured by the Company's assets. The debenture will rank pari passu with existing secured debt and with convertible debentures issued in 2014 which together have an aggregate principal amount outstanding of approximately $3,100,000, which with the new convertible debenture will have first priority against the Company's assets. Outstanding debt may be repaid after 6 months and thereafter upon 30 days notice. Any accrued but unpaid interest is payable semi-annually until the earlier of the maturity date or the date of conversion into units.

There are no finder's fees payable in connection with the convertible debenture private placement.

Shares allotted and issued upon conversion of the debenture or exercise of the warrants are subject to a hold period and may not be traded in British Columbia until July 18, 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 18, 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 fibre optic network covers 200 km. across metro Vancouver and Victoria and has a potential serviceable market of 850,000 residential units and 80,000 commercial enterprises. 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.

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