Urbana Corporation Prices Offering
Toronto, Ontario – July 3, 2007 – Urbana Corporation (“Urbana”) (TSX URB, URB.A, URB.WT) is pleased to announce that it has priced its previously announced best efforts short form prospectus offering (the “Offering”) of Units. Each Unit is comprised of one non-voting Class A share (“Non-Voting Class A Share”) in the capital of Urbana and one-half of one Non-Voting Class A Share purchase warrant (“Warrant”). The number of Units offered is up to 32,260,000 at a price of $3.10 per Unit for gross proceeds of up to $100,006,000. Each whole Warrant will entitle the holder to purchase one Non-Voting Class A Share at an exercise price of $3.75 for a period of two years from the closing date of the offering (the “Closing”), which is expected to take place on July 12, 2007 or on such other date as Urbana and the Agents (as defined below) may agree. The Units will separate into Non-Voting Class A Shares and Warrants immediately upon Closing. Urbana has filed a final prospectus in connection with the Offering. A copy of the prospectus may be obtained by contacting Blackmont Capital at 181 Bay Street, BCE Place, Suite 900, P.O. Box 779, Toronto, Ontario, M5J 2T3 or on SEDAR at www.sedar.com.
The net proceeds of the Offering will be used to purchase additional participation in various stock, options and commodities exchanges as opportunities arise and for general corporate purposes.
Blackmont Capital Inc. is lead agent for a syndicate that includes CIBC World Markets Inc., National Bank Financial Inc., Raymond James Ltd., TD Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., HSBC Securities, (Canada) Inc., Wellington West Capital Markets Inc. and GMP Securities L.P. (the “Agents”). The Agents have been offered an over-allotment option of up to 15% of the securities offered exercisable in whole or in part within 30 days after Closing. This will enable the Agents to purchase additional Non-Voting Class A Shares and Warrants at specified prices to cover over-allotments, if any, for market stabilization purposes.
Caldwell Investment Management Ltd., which acts as investment manager for Urbana, is wholly owned by Caldwell Financial Ltd. (“Caldwell Financial”). Caldwell Financial owns 40.0% of Urbana’s common shares, 300,000 Non-Voting Class A Shares and 150,000 Warrants and is controlled by Thomas S. Caldwell, the President of Urbana. Thomas S. Caldwell beneficially owns directly or indirectly 965,927 common shares of Urbana representing 9.7% of Urbana’s outstanding common shares and exercises control or direction over the 4,000,000 common shares of Urbana owned by Caldwell Financial through his interest in Caldwell Financial. In total, Thomas S. Caldwell owns and exercises control or direction over approximately 49.7% of Urbana’s common shares.
Please contact Elizabeth Naumovski, Investor Relations at 416-595-9106 for further information.