Urbana Announces Proposed Private Placement
Toronto, Ontario – August 16, 2006 – Urbana Corporation (“Urbana”) (TSX Venture: URB) is pleased to announce a proposed private placement of up to 1,000,000 common shares at a purchase price of $2.00 per common share. Urbana currently expects that the private placement will be completed on or about August 31, 2006. Commissions of 5% will be paid to agents, which will include Caldwell Securities Ltd., in connection with the private placement.
The Corporation currently has 9,000,000 common shares issued and outstanding. Following the completion of the proposed private placement, the Corporation will have up to 10,000,000 common shares issued and outstanding. The private placement is subject to the approval of the TSX Venture Exchange. Caldwell Financial Ltd. currently owns 3,800,000 common shares of Urbana, representing 42.2% of Urbana’s total outstanding common shares. Pursuant to the private placement, Caldwell Financial Ltd. intends to purchase up to 200,000 Urbana common shares, or 20% of the common shares being offered.
The proceeds of the offering, together with current assets of Urbana, are expected to be used to purchase one or more seats on the Chicago Board Options Exchange.
Each of Urbana, Caldwell Financial Ltd. and Caldwell Securities Ltd. are directly or indirectly controlled by Thomas S. Caldwell.
Please contact Thomas S. Caldwell at 416-595-9106 for further information.
This press release has not been reviewed by the TSX Venture Exchange and it does not accept responsibility for the adequacy or accuracy of this release.