Urbana Corporation to Support Employee-Led Buyout of CI Capital Markets Inc.
Toronto, Ontario – March 8, 2010 – Urbana Corporation (“Urbana”) (TSX: URB.A) is pleased to announce it has entered into an agreement to invest approximately $5 million in support of the employee-led buyout of CI Capital Markets Inc., through the purchase of a combination of equity and subordinated debt. The transaction is subject to IIROC and regulatory approval and is expected to close on or about March 12, 2010.
CI Capital Markets is the former corporate finance and institutional sales, trading and research division of Blackmont Capital Inc.
“We view this investment as an opportunity to expand Urbana’s portfolio of investments in the financial services sector and a unique opportunity to participate in an attractive segment of the investment industry,” said Thomas Caldwell, President of Urbana.
“We are very excited to have Urbana as a partner as we grow our business, as an employee-owned firm. We believe that Urbana’s financial strength and financial sector expertise will provide us with a significant strategic advantage going forward,” said Jeff White, CEO of CI Capital Markets.
This investment is within the context of Urbana’s current strategy of acquiring interests in businesses within the financial services sector. Urbana is an investment corporation listed on the Toronto Stock Exchange (TSX: URB.A). Urbana also has interests in numerous North American and international securities exchanges.
Elizabeth Naumovski, Investor Relations at 416-595-9106 for further information.
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 the membership purchase announced will be completed, or that if completed, such membership purchase will be a profitable investment for Urbana. Unless required by applicable securities law, Urbana does not assume any obligation to update these forward-looking statements.