VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 12/18/14 — Urban Communications Inc. (TSX VENTURE: UBN) announces that the Court of Appeal of British Columbia has granted an order that stays execution of the order of the Supreme Court of British Columbia dated June 11, 2014, upon provision of security, pending the disposition of the appeal. The Supreme Court ruled that a customer of the Company had not effectively exercised options to renew leases of a substantial number of fibre optic strands in a network connecting multiple sites of the customer, and that the customer has lost the right to exercise the option in the future, including those portions of the lease where the time to exercise the option has not yet passed.
The Court of Appeal further ordered that on or before December 15, 2014, the customer post security of $500,000 for the Company–s claim for use of the fibres by the customer since the disputed exercise of the options in the event the Company is ultimately successful in the litigation. This security is to be in the form of a letter of credit or in an alternative form of security satisfactory to both parties. The parties have agreed to an alternative form of security, which has been delivered by the customer within the time set by the Court.
The appeal will be heard by the Court of Appeal commencing January 19, 2015.
Urban Communications owns and operates a 200 km. fibre optic network throughout metro Vancouver and Victoria. The company is about to launch Urbanfibre with services equal to 1000 Mbps to residential and commercial buildings along its fibre optic core.
BY ORDER OF THE BOARD
Leslie E. Maerov, Executive Chairman
Neither 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 release.
Contacts:
Urban Communications Inc.
John Farlinger
Chief Executive Officer
(604) 763-7565
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