Urbanfund Corp.
TSX VENTURE : UFC

December 18, 2006 07:00 ET

Urbanfund Corp. Announces Closing of Acquisition

TORONTO, ONTARIO--(CCNMatthews - Dec. 18, 2006) - Mitchell Cohen, President of Urbanfund Corp. ("Urbanfund" or "the Company") (TSX VENTURE:UFC), is pleased to announce that pursuant to a share purchase agreement dated December 15, 2006 among the Company and Westdale Construction Co. Limited ("Westdale"), the Company purchased 10% of Westdale's interest (the "Transaction") in a privately-held company, Laval Armand Properties Ltd. ("Laval") for a purchase price of $192,500.00. The Transaction results in the Company holding a 5% interest in Laval and is anticipated to increase the Company's net cash flow. The Transaction was effected in furtherance of the Company's stated objective, which is to identify, evaluate and invest in real estate or real estate related projects.

Laval owns a 89,970 square foot, fully-leased laboratory facility located at 445 Armand-Frappier Boulevard in Laval, Quebec (the "Property"). The Property is 100% leased on a long-term basis to LAB Research Inc., a publicly traded company that is a recognized leader in the rapidly growing non-clinical contract research field.

Pursuant to a directors' resolution dated June 5, 2006, the Transaction was approved by the Company's directors, including unanimous approval of the Company's independent directors. Mr. Ronald S. Kimel, the Chairman and Chief Executive Officer of Urbanfund, is the principal shareholder of Westdale. By virtue of Westdale being a "related party" to Urbanfund within the meaning of Ontario Securities Commission Rule 61-501, the Proposed Transaction constituted a "related party transaction" and was subject to the requirements of such rule. Since the purchase price of the Transaction did not exceed 25% of the Company's market capitalization, it was exempt from the formal valuation and minority shareholder approval requirements under Rule 61-501 and the applicable policies of the TSX Venture Exchange.

Urbanfund Corp. is a TSX Venture exchange listed real estate company based in Toronto. The Company's common shares trade under the symbol UFC.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend", "may", "will", "should", "could", "anticipate", "believe", "plan", "estimate", "potential", "expect" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Company. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the Company's continuous disclosure documents filed with the Ontario Securities Commission and other regulatory authorities at www.sedar.com. Actual results may differ materially from those currently anticipated. The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this press release.

Neither the TSX Venture Exchange nor any other regulatory body has reviewed and therefore does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Urbanfund Corp.
    Mitchell Cohen
    President
    416-361-5000
    or
    Urbanfund Corp.
    Steve Isenberg
    Director
    416-603-4343