SOURCE: Urban Communications Inc.

Urban Communications Inc.

June 09, 2015 06:30 ET

Urban Communications Inc. Reaches Subscriber Milestone and Provides Progress Report on Gigabit Service Expansion in Vancouver

VANCOUVER, BC--(Marketwired - June 09, 2015) - Urban Communications Inc. (TSX VENTURE: UBN) ("Urban" or the "Company") is pleased to provide a corporate update and report the progress of its efforts to expand its network coverage and increase subscribers for its Gigabit Internet services in Vancouver.

Highlights of Achievements from May 2014 to May 2015:

  • MAY 2014 -- New management team joined the Company and identified new opportunities to focus on high growth, high margin residential and commercial 1-Gigabit Internet services
  • AUGUST to DECEMBER 2014 -- Closed convertible debenture and private placement totaling over $3.0M to clean up balance sheet and provide working capital to pursue new business direction
  • FEBRUARY to APRIL 2015 -- Closed private placement totaling $1.5M, proceeds of which were allocated to business expansion
  • MARCH 2015 -- Urban became one of the first companies in Canada to launch Gigabit residential Internet service, starting with Vancouver and Burnaby, BC
  • APRIL 2015 -- Launched disruptive, low-cost Gigabit commercial internet service ahead of schedule
  • MAY 2015
    • Completed fibre access agreement with the City of Coquitlam to extend network reach to an additional 6,000+ households
    • Secured first 100 Gigabit Internet subscribers in just over two months since service launch, reaching first residential target milestone
    • Completed infrastructure re build allowing the company to ramp up and hit targeted projections of next 24 months

Details:

The Company underwent considerable change and made excellent progress over the past 12 months. Efforts during the period were focused on the launch of ultra-high speed Gigabit Internet services to residential and business consumers in Vancouver, proving out the Company's business model and establishing the framework for revenue and subscriber growth through 2015.

There are over 850,000 residential units and over 80,000 businesses within Urban's 200 km. fibre optic network. Since March 2015, Urban has enabled service and gained access agreements to connect a total of over 2,200 residential units and over 170 businesses in Metro Vancouver -- see Company press releases on March 19, 2015, April 16, 2015, and May 6, 2015.

"The reception to our Gigabit Internet service has been fantastic -- demands are coming from across the region. To service the demand, we have escalated our plans to expand network coverage into more communities as quickly as possible," said Jon Paul Janze, VP of Product Marketing at Urban.

"We expect to see growth in revenue and subscriber numbers for the balance of 2015," stated John Farlinger, Urban's CEO. "Our success is evidenced by the significant increase of Urban's market capitalization over the last 12 months. This achievement would not be possible without the tremendous support from our new and existing shareholders. We intend to multiply our current numbers and are confident that our hard work will continue to grow shareholder value in due course."

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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