SOURCE: Urban Communications Inc.

Urban Communications Inc.

June 05, 2015 22:20 ET

Urban Communications Inc. Further Strengthens Balance Sheet to Support 2015 Growth Plans

VANCOUVER, BC--(Marketwired - June 05, 2015) - Urban Communications Inc. (TSX VENTURE: UBN) ("the Company"), Vancouver-based telecommunication company and one of the first in the country to deliver Gigabit Internet service to the home, is pleased to announce that its consolidated annual audited financial statements, related Management's Discussion & Analysis ("MD&A") and National Instrument ("NI") 52-109FV1 officer certification reports for the quarter ended March 31, 2015 were filed on SEDAR on May 29, 2015, and can be viewed at www.sedar.com.

HIGHLIGHTS FOR THE QUARTER ENDED MAY 31, 2015:

  • $1,496,000 of financing completed in the quarter ($1,297,000 from two tranches of an equity private placement of $1,500,000 and $199,000 from convertible debentures)
  • Cash on hand of $987,716
  • $541,710 improvement in working capital (a working capital surplus of $397,489 at March 31, 2015 compared to a working capital deficit of $144,221 at December 31, 2014)

DETAILS

Urban continued to strengthen its balance sheet position in the first quarter of 2015, closing the first two tranches of an equity private placement to raise $1,297,000 and replacing higher coupon secured debt of $199,000 with lower coupon convertible debentures. At March 31, 2015, cash on hand was $987,716 and additional financing of $203,000 was raised in May through the final tranche of the equity private placement. In addition, the Company entered into three capital lease agreements in the first five months of the year for a total of $186,442 to purchase additional network equipment.

The Company incurred a net loss of $852,725 in the quarter ended March 31, 2015, compared to a loss of $253,399 for the corresponding quarter in the prior year. This increase in net loss was primarily due to increased operating costs as the Company launched its new 1-Gigabit (1-Gbps) services to both residential and commercial customers in 2015.

Urban's CEO, John Farlinger stated, "Our focus for 2015 is to continue launching our new residential and commercial services within our network in British Columbia. We launched our 1-Gbps service at the end of Q1 2015 and our expectation is that we will see the results of that launch through an increase in revenue and subscriber numbers in Q2, Q3 and Q4 of 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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