Urbana Corporation Announces Exercise of Over-Allotment Option

Toronto, Ontario – January 24, 2007 – Urbana Corporation (“Urbana”) (TSX: URB) today announced that Blackmont Capital Inc., on behalf of the syndicate of agents, has exercised the over-allotment option granted to them in connection with Urbana’s previously announced offering of units (the “Units”), which closed on January 11, 2007. Each Unit consisted 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”). Each whole Warrant entitles the holder to purchase one Non-Voting Class A Share at an exercise price of $3.75 until January 11, 2009. The Units separated into Non-Voting Class A Shares and Warrants immediately upon closing of the offering.

 

The over-allotment option has been exercised in full, which will result in the sale of an additional 2,419,000 Non-Voting Class A Shares and an additional 1,209,500 Warrants, at a price of $3.05 per Non-Voting Class A Share and $0.05 per one-half Warrant, for gross proceeds of $7,498,900. The closing of the over-allotment option is expected to occur on January 29, 2007.

 

Caldwell Investment Management Ltd., which acts as investment manager for Urbana, is wholly owned by Caldwell Financial Ltd. (“Caldwell Financial”).Caldwell Financial owns 40% of Urbana’s common shares 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 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 49.66% of Urbana’s common shares.

 

Please contact Thomas S. Caldwell at 416-595-9106 for further information.