Brampton, Ontario--(Newsfile Corp. - March 27, 2026) - Urban Infrastructure Group Inc. (TSXV: UIG) ("UIG" or the "Corporation"), a leading stage-one concrete and drainage infrastructure construction group, specializing in large scale new residential housing developments, would like to announce that it has entered into a loan arrangement with a related party (the "Lender") whereby the Lender advanced to the Corporation an aggregate of $500,000 (the "Loan"). UIG will use the Loan for working capital and general corporate purposes.
The Loan bears interest at a rate of 12% per annum and is evidenced by a promissory note in favour of the Lender. The Loan is repayable on September 9, 2026. The loan is secured in favour of the Lender in the form of a first ranking charge against any litigation proceeds of all present and future litigation matters involving the Corporation. The loan is also subject to the personal guarantee of the Corporation's Chief Executive Officer.
The Corporation also intends to issue to the Lender, subject to approval of the TSX Venture Exchange (the "TSXV"), as a loan bonus, an aggregate of 5,000,000 common share purchase warrants of the Corporation ("Bonus Warrants"). Each Bonus Warrant entitles the Lender to acquire one (1) common share in the capital of the Corporation at an exercise price of $0.05 per share for a period of one (1) year from the date of the promissory notes (the "Expiry Date").
The Lender is a "related party" (as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101")) of the Corporation and, therefore, the Loan is a "related party transaction" (as defined in MI 61-101). UIG is exempt from the formal valuation requirement and the minority approval requirement under MI 61-101 in respect of the Loan since, at the time of the Loan, the fair market value of the consideration for the Loan did not exceed 25% of UIG's market capitalization.
In connection with the Loan, the Corporation will be paying a finder's fee of $25,000 to an arm's length third party.
Up-tick in Business Activity
UIG has its skilled crews operating currently on three (3) sites in the GTA-West in Oakville, Kitchener and Milton. Additionally, UIG has been informed that April 13 will be the start date of the first phase of a 220-home project in Caledon, Ontario.
"Housing shortage in Canada is a systemic issue and one that is not going to be solved overnight. While markets take time to work out imbalances, economic conditions and consumer sentiment, the need for more Canadian housing remains a constant. Urban and its dedicated crews of skilled construction professionals are proud to play a role in addressing this national issue on behalf of our customers, shareholders and Canadian homeowners" said Gary Alves, Chief Executive Officer, UIG.
Update on Previously Disclosed Construction Lien Litigation
As previously disclosed, Urban is a party to five construction lien actions commenced in Ontario under the Construction Act (Ontario) (collectively, the "Actions"). The Actions relate to disputes arising from Urban's provision of certain construction services and materials to various residential development projects. Urban has asserted claims in the Actions for, among other things, amounts it alleges are owing for services and materials supplied and, in certain Actions, additional damages claimed in connection with alleged wrongful termination. The defendants have delivered defences and counterclaims in the Actions and have alleged, among other things, deficiencies and delay, all of which allegations Urban disputes.
Procedural Update
The Corporation confirms the following procedural status updates regarding the Actions, based on information received from counsel and management:
- Discoveries were completed in the summer of 2024.
- Trial records have been filed for all five Actions.
- All Actions have now been set down for trial in their respective jurisdictions.
- A pre-trial conference for one of the Actions took place on December 11, 2025.
- Pre-trial conferences for two of the Actions are scheduled for April 14, 2026.
- A pre-trial conference for one of the Actions is scheduled for July 22, 2026.
- A motion to have the Actions tried together has been filed by both the defendants and Urban; however, no motion date has been set yet.
Urban continues to maintain that it supplied services and materials in accordance with its contractual arrangements and denies the allegations advanced in the counterclaims. As with all litigation, the Actions remain subject to court processes, including potential procedural steps and scheduling changes, and there can be no assurance regarding the ultimate outcome. The Corporation will provide further updates regarding the Actions as appropriate in accordance with applicable disclosure obligations.
About Urban Infrastructure Group
UIG is a leading concrete and drainage infrastructure construction group engaged in the earliest stage of the construction process - known as Stage One. Urban Infrastructure Group specializes in large-scale, master-planned residential communities, with partners and customers behind some of Ontario's most significant residential development projects.
Connect with UIG: https://urbaninfrastructuregroup.com/
Contact:
Gary Alves
T: 647-391-8190
E: gary@urbaninfrastructuregroup.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Forward-looking information is generally identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "scheduled", "intends", "anticipates", "believes" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" occur or be achieved.
In particular, this news release contains forward-looking information relating to, among other things, the intended use of proceeds of the Loan, the Corporation's current and expected business activity and project timelines (including the anticipated April 13 start date referenced herein), the ability of the Corporation to maintain and expand production activity, the receipt of required approvals of the TSX Venture Exchange in respect of the Bonus Warrants, and the timing and availability (if any) of litigation proceeds that may be realized by the Corporation.
Forward-looking information is based on certain assumptions, including, without limitation, assumptions regarding general economic and market conditions, continued demand for residential housing development activity in the Corporation's markets, the Corporation's ability to deploy crews and resources as planned, the ability of counterparties and customers to perform in accordance with their arrangements, the Corporation's ability to comply with the terms of its financing arrangements, and the receipt of required regulatory approvals.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, without limitation, risks relating to adverse economic and market conditions, changes in the level of residential construction activity, labour and supply constraints, weather and other operational risks, project scheduling changes or delays, customer and counterparty performance risk, the Corporation's ability to obtain the required approvals of the TSX Venture Exchange, and risks and uncertainties associated with litigation, including the timing and outcome of proceedings and the timing and amount (if any) of proceeds that may be realized.
Although the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/290193
Source: Urban Infrastructure Group Inc.
