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Urban Communications Inc (TSXV:UBN)

Summary

Urban Communications Inc. is a TSX Venture Exchange listed telecommunications company. The company is focused on delivering ultra-high speed Internet, voice, video and broadband services over its private fibre-optic network to commercial, residential and public customers in Vancouver, Canada.

Market Overview

$0.06 (-8.330%)
Vol 0.00
10 Days Avg Vol 11,877.78
3 Mo Avg Vol 63,893.40
52 Wk Lo/Hi $0.05 - $0.11
YTD Price Gain % 0%
12 Wks Moving Avg 0.061556
200 Days Moving Avg 0.061900
Market Cap 5,563,888

Company Background

Urban Communications Inc. (TSX.V: UBN) (“Urban” or the “Company”) is a publicly-traded licensed-non-dominant telecommunications carrier delivering a full suite of ultra-high speed Internet, voice, video and broadband services over its private fibre-optic network to commercial, residential and public customers in Vancouver, Canada.

Highlights

  • Urban is an unique opportunity to invest in and grow an established fiber network located in an ultra-dense metropolitan market
  • This is a unique opportunity because it is one of the largest private fibre networks in western Canada which provides a competitive advantage to deliver commercial and residential services.
  • Urban has already proven concept, demand and ability to execute
  • The company expects to be EBITDA positive in 2017
  • New capital is being sought to help the company expand and monetize its network.
  • Urban has all key operational pieces for a competitive and successful fiber provider
    • Extensive network
    • State-of-the-art technology
    • Robust sales team and marketing strategy
    • Strategic partnerships and network expansion agreements
    • Best-in-class executive management team
  • Despite limited capital, the Company is already experiencing success with strong market acceptance of its offering
  • With funding, Urban will be able to leverage its network, proven management team, strategic relationships and disruptive product offering to aggressively capture market share

Share Structure

Urban Communications Inc.
TSX-V:  UBN
   Share Structure
    Common Shares 91,340,215
    Outstanding Options 6,260,000
    Common Stock Warrants 74,874,982
    Embedded Warrants if finder’s warrants exercised 778,400
    Fully Diluted Shares 173,254,197
    Board and Management Holdings 17.7%
   Share Trading Activity
    3 month average daily volume (shares) 35,684
    52 week low/high ($/share) $0.05/$0.095
    Current Share Price (January 17, 2017) $0.055
    Average Warrant Price $0.159
   Market Capitalization (I/O) $5,024,000
   Cash Balance XXXX
   Debt Outstanding XXX
 (all amounts as of January 17, 2017)

Other Information

Unparalleled Regional Fibre Network

The Company owns and operates 200km of fibre-optic network passing through densely populated metropolitan areas in the city of Vancouver and Vancouver Island. The network has excess capacity with no projected capacity constraints for the foreseeable future and is not encumbered by legacy or copper infrastructure that could potentially inhibit network speeds. Urban is a unique opportunity because of the value of the fibre infrastructure which has been independently valued between $13 Million and $30 Million and its high margin, recurring revenue model.

Densely Populated Local Market

The Greater Vancouver area has an estimated population of 2.5 million with an additional 1.0 million people and 500,000+ jobs expected to come to the region over the next 25 years. Vancouver is the most densely populated city in Canada  and fourth most densely populated city in North America.[1] The Company currently has access to a potential serviceable market of over 80,000 commercial enterprises and 920,000 residential units.[2]

Service Offerings

Urban is the only operator of 1-Gigabit Internet service to both business and residential consumers in Vancouver. It delivers service to three vertical markets, business and enterprise, residential and municipal. The Company offers its services at a steep discount to the competition while maintaining high margins.

Unique Opportunities for Growth

The Company has formed strategic relationships by partnering with municipalities adjacent to its current network footprint to create opportunities that will further grow its subscriber base and network. These relationships allow Urban to offer its services through existing municipality-owned fibre networks at significantly reduced customer acquisition costs.

Management Profiles

John Farlinger

Chairman and CEO

CEO of Titan Communications, CEO and President of Adzilla (Silicon Valley) Inc., COO of Quanta Investments Inc. (Seattle) and CFO of Lavalife.com

Mitchel Shore

CMO

Founder and CMO, Yak Communications Inc. (acquired by Globalive), Founder and President, 450Tel Inc. (acquired by Globalive), Seed Investor & Marketing, Mill Street Brewery (acquired by Labatt)

Jon Paul Janze

VP of Product

Director of Marketing at Titan Communications, Director of Product Management at Sutus, Director of Product Development Group of Adzilla (Silicon Valley) Inc.

Tom Samplonius

VP of Technology

VP of Operations of Uniserve Communications Corp. (TSX.V:USS), VP of Technology of Titan Communications/Galaxy Multimedia Inc.