SOURCE: Urban Communications Inc.

Urban Communications Inc.

November 30, 2015 20:00 ET

Urban Communications Inc. Announces Settlement of Litigation

VANCOUVER, BC--(Marketwired - November 30, 2015) - Urban Communications Inc. (TSX VENTURE: UBN), one of the country's first telecommunications companies to deliver Gigabit Internet service to the home, announces that the Company and three of its current directors and officers have settled three separate lawsuits with a former director and Chief Operating Officer of the Company and companies that he controls. These lawsuits included:

  • claims by the former director and officer of alleged misconduct and alleged fraudulent activity against the Company and three of its current directors and officers;
  • a claim by Urban against a company owned by the former director and officer that was also a supplier to the Company claiming that the supplier did not provide services for which it billed the Company, or those billings were inflated or unauthorized, and that it made misrepresentations concerning the amounts owing; and
  • a claim by companies owned by the former director and officer against a current director and officer for repayment of loans.

All of those actions were dismissed by consent without costs as if dismissed on their merits after a trial, and mutual releases have been signed by all parties.

Due to the timing of the settlement, its effect has not been reflected in the Company's third quarter statements filed on November 30, 2015, however after provision for legal costs the Company expects a net gain on its income statement and a positive effect on its balance sheet of close to $150,000. In addition, the Company avoids substantial legal costs of separate trials and the disruption to operations that those proceedings would cause.

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 fibre optic network covers 200 km. across metro Vancouver and Victoria. 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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