Urban Communications Inc. Announces Partial Sale of Network Assets to Rogers Communications
10 Marzo 2011 - 3:30PM
Marketwired
Urban Communications Inc. (TSX VENTURE: UBN) is pleased to announce
that it has reached agreement with Rogers Communications, one of
Canada's leading telecommunications, entertainment and media
providers, to sell a portion of its fibre optic network in metro
Vancouver and Victoria. The assets being sold are surplus to
Urban's requirements and Urban will retain ample network assets to
fully implement its business plan to provide next generation
Internet, telephone, video and data transfer services to
commercial, residential and public sector customers over the 190
km. network.
Under the terms of the agreement, Urban will receive $8 million,
which will be used to retire both secured and unsecured debt, and
to provide capital to generate new subscriber revenue and expand
its service offering.
Urban president, Leslie E. Maerov, said: "This transaction
dramatically changes the prospects of the Company. Immediately we
will go from having a $6 million working capital deficiency to a
surplus that will enable us to add new commercial and residential
subscribers and build value for our shareholders. We are very
fortunate to have been able to resolve our significant financial
issues for the foreseeable future in one transaction, and are now
able to focus on providing the leading edge services that our fibre
optic network enables us to do."
The transaction is scheduled to complete within 60 days, subject
to satisfaction of certain conditions typical in a transaction of
this nature.
In a news release issued February 1, 2011, Urban stated that its
position with respect to the agreement with Persona Communications
Inc. to sell all the shares of subsidiaries, Urban Utility Corp.
and Urban Networks Inc., was that the agreement had not terminated.
Since that date Urban has accepted Persona's position that the
agreement has terminated and is no longer in force or effect. The
transaction with Rogers is one of the opportunities authorized by
Urban's shareholders to fulfil its business plan objectives that
not only replaces the Persona transaction in respect of capital
funding, but allows Urban to carry on active business operations
with a manageable debt load.
About Urban Communications Inc.
Urban Communications Inc., 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 in metro Vancouver and
Victoria.
Except for historical information contained herein, the
statements in this news release contain or 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 Urban Communications Inc.'s current expectations and are
subject to a number of risks, uncertainties and assumptions. Should
one or more of these risks or uncertainties materialize, or should
the underlying assumptions prove incorrect, actual results may
differ significantly from results expressed or implied in any
forward-looking statements made by Urban Communications Inc. in
this news release. These risks and uncertainties include, among
other things, raising significant investment capital, locating and
retaining senior technical and financial expertise, customer
loyalty, demand for services, market competition and other risks
detailed in documents filed with the TSX Venture Exchange or
British Columbia Securities Commission. 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.
Contacts: Urban Communications Inc. Leslie E. Maerov President
(604) 439-8545 ir@ubn.ca www.ubn.ca
Urban Communications Inc. (TSXV:UBN)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Urban Communications Inc. (TSXV:UBN)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024