Urban Infrastructure Group Inc. Announces Working Capital Funding, Increased Production Activity and Construction Lien Litigation Update

Executive Summary

• Urban Infrastructure Group Inc. entered into a $500,000 related‑party loan with a first‑ranking charge on any litigation proceeds and a personal guarantee from the CEO.
• The loan carries 12% annual interest, matures on September 9 2026, and is accompanied by an issuance of 5,000,000 common share purchase warrants (exercise price $0.05) as a loan bonus.
• A $25,000 finder’s fee will be paid to a third‑party advisor; proceeds are earmarked for working capital and general corporate purposes.

Key Details

• Loan Amount: $500,000 cash advanced by related party (“Lender”).
• Interest Rate: 12% per annum.
• Maturity/Repayment Date: September 9 2026.
• Security: First‑ranking charge over any present and future litigation proceeds; personal guarantee of the CEO.
• Bonus Warrants: 5,000,000 common share purchase warrants issued to Lender at $0.05 per share, exercisable for one year from issuance.
• Finder’s Fee: $25,000 payable to an arm‑length third party in connection with the loan.
• Use of Proceeds: Working capital and general corporate purposes.
• Regulatory Exemption: Loan qualifies for exemption from formal valuation and minority approval under MI 61‑101 (consideration < 25% of market cap).
• Operational Update: crews active on three GTA‑West sites; first phase of a 220‑home project in Caledon slated to start April 13, 2026.
• Litigation Update: Five construction lien actions remain pending; discoveries completed (summer 2024), trial records filed, trials set, pre‑trial conferences scheduled for Apr 14 2026 and Jul 22 2026.

Notable Quotes

“Housing shortage in Canada is a systemic issue… Urban and its dedicated crews of skilled construction professionals are proud to play a role in addressing this national issue,” – Gary Alves, CEO, UIG.