Urbana Corporation Files Preliminary Short Form Prospectus

Toronto, Ontario – June 6, 2007 – Urbana Corporation (“Urbana”)(TSX URB, URB.A, URB.WT) is pleased to announce that it has filed a preliminary short form prospectus providing for the offering of units (“Units”), subject to regulatory approval. 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”) at a price to be determined in the context of the market. Each whole Warrant will entitle the holder to purchase one Non-Voting Class A Share at a price to be specified for a period to be determined from the closing date of the offering. The Units will separate into Non-Voting Class A Shares and Warrants immediately upon closing.

 

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., as lead agent for a syndicate including 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., has entered into an engagement letter with Urbana in connection with the offering.

 

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.