/NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
U.S./
TSX: URB. URB.A, URB.WT, URB.WT.A
TORONTO, July 12 /CNW/ - Urbana Corporation ("Urbana") (TSX: URB, URB.A, URB.WT, URB.WT.A) is pleased to announce that it completed a closing relating to its previously announced short form prospectus offering (the "Offering") of units ("Units") through 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 Inc. and GMP Securities L.P. (the "Agents"). 24,193,600 Units have been sold for gross proceeds of approximately $75 million.
Each Unit sold pursuant to the Offering for $3.10 consists of one non-voting Class A share ("Non-Voting Class A Share") in the capital of Urbana and one-half of one Series A 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 July 12, 2009. The Units separated into Non-Voting Class A Shares and Warrants immediately upon the closing today.
The net proceeds of the Offering will be used to purchase additional participations in various stock exchanges as the opportunity arises and for general corporate purposes.
Urbana has granted the agents an over-allotment option which entitles the agents to purchase additional Non-Voting Class A Shares and Warrants to a maximum of 15% of the Non-Voting Class A Shares and Warrants issued pursuant to the Offering for a period of 30 days following today's closing.
A copy of the prospectus may be obtained on SEDAR at www.sedar.com.
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.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Urbana to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There is no assurance that Urbana will find suitable investments for the proceeds or that any investments will be profitable. Unless required by applicable securities law, Urbana does not assume any obligation to update these forward-looking statements.