Le Lézard
Classified in: Business

Urbana Corporation Announces Updated Management and Advisory Agreement

TORONTO, Dec. 06, 2019 (GLOBE NEWSWIRE) -- Urbana Corporation ("Urbana" or the "Corporation") (TSX & CSE: URB & URB.A) today announced that it has entered into an updated management and advisory agreement (the "Updated Management Agreement") with its manager, Caldwell Investment Management Ltd. ("CIM").

The independent directors of the Corporation (the "Independent Committee") acting as a committee of the Corporation's Board reviewed and oversaw the negotiation of the Updated Management Agreement, including the investment management fees paid to CIM as the investment manager of Urbana thereunder. The Independent Committee engaged Crosbie & Company Inc., an independent financial advisory firm, to provide an analysis and comparison of the investment management fees paid to CIM by Urbana with arm's length compensation arrangements for other investment vehicles in Canada comparable to the Corporation. The Independent Committee also had independent legal advice.

Following a recommendation of the Independent Committee, the Board approved the Updated Management Agreement, pursuant to which, effective January 1, 2020 (i) investment management fees payable to CIM will increase from 1.5% to 2.0% of the market value of the Corporation's investment portfolio; (ii) with the exception of normal course issuer bid purchases, CIM will pay a fee to cover all charges for brokerage, trade execution and other necessary investment-related services rendered directly or indirectly for the benefit of  the Corporation by Caldwell Securities Ltd. ("CSL"); and (iii) termination requires 12 months prior notice (previously 60 days), which notice, in the case of CIM, cannot be provided until 2021The Independent Committee determined, based on among other factors advice from Crosbie & Company Inc. that the updated Management Agreement is reasonable to the shareholders of Urbana.

Thomas S. Caldwell, the CEO and President, and a director, of the Corporation who beneficially owns directly or indirectly or exercises control or direction over approximately 44.4% of the outstanding Common Shares of the Corporation, is also the owner of 38.5% of CIM and CSL and Urbana owns 20% of both CIM and CSL.

A copy of the Updated Management Agreement will be made available under the Corporation's profile on SEDAR at www.sedar.com.

For further information contact:
Elizabeth Naumovski
Investor Relations
(416) 595-9106      enaumovski@urbanacorp.com

Forward-Looking Statements
Certain statements in this news 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. Unless required by applicable securities law, Urbana does not assume any obligation to update these forward-looking statements.

TEL: 416-595-9106    FAX: 416-862-2498    info@urbanacorp.com   www.urbanacorp.com

These press releases may also interest you

at 08:38
FIDx, a product-agnostic platform that seamlessly integrates insurance solutions with wealth management platforms, today announced a strategic partnership with Halo Investing, a marketplace provider that connects investors to protective investment...

at 08:38
R.J. Brunelli & Co., LLC today announced that it has been appointed exclusive leasing agent for the upper level of the former two-story Sears building at Seaview Square, a 775,000-square-foot power center in this Monmouth County municipality. The...

at 08:38
October is National Disability Employment Awareness Month (NDEAM), established by the U.S. Department of Labor, which recognizes and celebrates the contributions of people with disabilities in the workforce. This year marks the 75th anniversary of...

at 08:38
Rapidly growing Midwest grocery chain, Fareway, announced a partnership with RangeMe, the industry standard discovery platform for product suppliers and retailers, to accelerate their mission of providing the highest quality and freshest products...

at 08:38
Hyperion Bank is included among the Philadelphia Business Journal's 2020 "Soaring 76" list, ranking the Greater Philadelphia region's fastest-growing businesses. Hyperion came in at #34 on the list of private and public companies, with 39 percent...

at 08:38
Joel Klatt, considered by many one of America's foremost experts in quarterback play, has entered a Partnership Agreement with Precision Sports Devices LLC, makers of the patented PassLab digital training device....

News published on 6 december 2019 at 17:25 and distributed by: