19 Jul 2016

Urbanfibre Continues to Expand its Network in Metro Vancouver

by | posted in: Charts | 0
Urban Communications (UBN.V) has taken the next step in its plan to build out its fibre optic network in greater Vancouver, Canada. The  Company has signed an agreement with GC Capital Inc. for the investment of $500,000 to fund the capital cost of constructing network extensions from its backbone fibre optic network to connect residential and commercial buildings.
Gary Chan, President of GC Capital (Toronto, Canada based equity firm) offered the following comments regarding the agreement between UBN and GC:
“We are very excited to be a part of Urban’s growth now and into the future, it is our intention to invest up to $1M this year and potentially another $4M over the next three years to fund Urban’s capital needs and help roll out Gigabit Internet services across metro Vancouver and Vancouver Island.”
The arrangement allows Urban to significantly reduce its need for external capital and introduces a relationship with an investment partner that could support Urban’s future infrastructure expansion plans. Urban CEO John Farlinger offered the following comments:
“Urban is very pleased to be working with Gary Chen and his partners, this revenue share deal represents a capital expenditure funding mechanism through which Urban can significantly reduce its need for external capital without introducing substantial shareholder dilution.”
The investment from GC Capital is going to allow Urban to connect its existing fibre network to more commercial and residential buildings. As the company continues to grow subscribers and add additional product lines, they are establishing themselves as a major player.
In addition to growing their existing fibre network by connecting more building, UBN announced in June a deal with the municipality of New Westminster. The access agreement will add an additional 30km route to Urban’s network, bringing the total footprint in the lower mainland to approximately 300km. This deal will bring high speed fibre to 125 buildings in New Westminster which represents roughly 10,000 consumers and a great opportunity for Urban Fibre.
“New Westminster has an innovative culture and BridgeNet provides the infrastructure we need to power our full potential,” said New Westminster Mayor Jonathan X. Coté. “Affordable access to broadband fibre is an ideal tool for connectivity and economic growth. We are pleased to be collaborating with Urbanfibre, bringing the benefits of broadband fibre to our community.”
The access agreement with New Westminster is Urban’s second municipal collaboration and the company hopes to add more partnerships across the lower mainland to expand the reach of their leading end products and services.
As the Fibre race heats up in Vancouver and the lower mainland it looks as though UBN has laid the right foundation for success!

Disclaimer:

Neither the 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 news release.

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.