VANCOUVER, BC --(Marketwired - July 05, 2016) - Urban Communications Inc. (TSX VENTURE: UBN) is pleased to announce that, subject to regulatory approval, it has agreed to increase its existing loan facility with MHI Finance Corp. by $750,000 from $3,650,000 to $4,400,000. The additional funding will be advanced in two tranches of $500,000 immediately and $250,000 as required by the Company. The original loan was announced on October 7, 2015.
The loan is structured as an amendment to the existing facility so that the increase in financing will be due and payable together with the previously advanced loan on October 2, 2017, and will also bear interest at the rate of 11% per annum, payable quarterly. The proceeds from the loan increase will be used for working capital.
The Company will pay a loan bonus of 4,500,000 warrants to purchase common shares exercisable at $0.10 each on or before June 30, 2020 as consideration for the loan advance. Any shares issued pursuant to the loan bonus will be subject to a statutory four month plus one day hold period from the date of issuance of the loan bonus warrants.
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 300 km. state-of-the-art carrier grade fibre optic network in Metro Vancouver and Victoria to commercial, residential and public sector customers. 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.