Urban Communications Inc.

Urban Communications Inc.

December 04, 2014 09:00 ET

Urban Communications Inc. Improves Working Capital by $2.3M in the Third Quarter

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 4, 2014) - Urban Communications Inc. (TSX VENTURE:UBN) Vancouver based Urban Communications Inc., one of the country's first telecom companies to deliver Gigabit Internet service to the home, is pleased to announce that its quarterly interim financial statements and related Management's Discussion & Analysis reports for the period ended September 30, 2014, were filed with SEDAR on December 1, 2014, and can be viewed at www.sedar.com.

Third Quarter 2014 Highlights:

  • Working capital deficit improved by $2,323,841 compared to June 30 2014
  • Private placement for $532,500 and convertible debenture for $1,227,000 closed in the quarter
  • Cash on hand of $674,386 plus a further $420,000 to be received from the debenture at September 30 2014
  • Outstanding loans payable renegotiated and deferred in the quarter, leading to one-off gain on settlement of $183,310

During the third quarter of 2014, Urban was focused on refinancing activities to provide a firm basis for the business to pursue its plans to launch Urbanfibre, with services equal to 1000 Mbps available to residential and commercial buildings along its fibre optic core in metro Vancouver.

$1.8m cash was raised through an equity placement and the issue of a convertible debenture, which allowed the Company to restructure existing debt and which will provide working capital for the Company moving forwards. Subsequent to September 30, the Company has closed additional tranches of convertible debt financing to raise a further $1,273,000.

The company incurred a net loss of $249,290 in the third quarter, bringing its net loss for the 9 months to September 30 to $900,568.

Urban's CEO, John Farlinger stated, "The financing activities we completed in the third quarter are a key step towards stabilizing the Company and providing Urban with solid foundation on which to deliver our new residential and commercial services."

Urban Communications owns and operates a 200 km. fibre optic network throughout the greater Vancouver and Victoria areas. The company is about to launch Urbanfibre with services equal to 1000 Mbps to residential and commercial buildings along its fibre optic core.

The statements in this news release may contain forward-looking statements, such as statements regarding Urban Communications Inc.'s future growth and profitability, growth strategy and anticipated trends in the industries in which Urban Communications Inc. operates. These forward-looking statements are based on management's current expectations and are subject to a number of risks, uncertainties and assumptions, and actual results may differ significantly from results expressed or implied in this news release. Urban Communications Inc. does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.

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.

Contact Information