SOURCE: Urban Communications Inc.

Urban Communications Inc.

February 17, 2016 20:21 ET

Urban Communications Inc. Grants Warrants to Indemnify Certain Officers

VANCOUVER, BC--(Marketwired - February 17, 2016) - Urban Communications Inc. (TSX VENTURE: UBN) announces that, subject to regulatory approval, the Company has granted warrants to purchase up to 1,308,411 shares to two directors and officers at $0.069 per share to indemnify them for private options they relinquished as part of a settlement of litigation against the Company and several directors and other parties. The claims made in the litigation were considered by the Company's board of directors to have been wholly without merit and initiated for a collateral purpose, however the two directors and officers relinquished their private options in order to benefit the Company and its future prospects, to reduce the Company's cost and risk in continuing to defend the litigation, and to eliminate the time commitment that they and other parties would have had to make in order to defend the litigation.

The board of directors determined that it is in the best interests of the Company to grant these warrants in order to put the two directors and officers in the position they would have been if the private option agreement had been fully honoured, both in terms of overall purchase price commitment and the number of shares.


Urban Communications Inc. (TSX VENTURE: UBN) is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its 200 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.

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