May 30, 2024

Urban Infrastructure Group Inc. Reports Financial Results for the three and six months ended March 31st, 2024

BRAMPTON, ON, May 30, 2024 – Urban Infrastructure Group Inc. (TSXV: UIG), a leading stage-one concrete and drainage infrastructure construction group, specializing in large scale new residential housing developments, announces its financial results for the three and six months ended March 31st, 2024. All financial information is provided in Canadian dollars unless otherwise indicated.

Ungad Chadda, CEO of UIG stated, “Urban continues to execute on its strategy and day-to-day business, however we have not been immune to the slow down in new housing builds that has prevailed over the last number of months.  The slowdown has impacted our contracted project delivery schedule in the form of project delays.  While we cannot predict the length of these delays with certainty, our view is that the long term structural shortage of housing in Ontario and other parts of Canada will remain a critical issue.  Notwithstanding the well understood cyclical nature of the housing industry, Urban is committed to its ambitious, long term growth strategy which leverages the promising future of the Canadian construction industry with its many demographic and macroeconomic tailwinds.  Notably, the current slowdown has had a positive impact on our M&A initiatives with the effect of accelerating and expanding the number of active M&A discussions with our stage-one construction industry targets.”

Management Commentary on the First Six Months of Fiscal 2024:

UIG’s fiscal second quarter is a seasonally slow period due to the winter months. In this fiscal year that slowdown was exacerbated by an industry-wide, well documented slow-down in the residential new home building market.  As a result of the delays, UIG’s revenue for the quarter was significantly lower than the prior year comparative period.  UIG continues to have a very strong pipeline of contracted jobs, and while it is unclear as to where the industry inflection point will be, based on our day to day discussions with our customers we are cautiously optimistic that conditions will improve going into the summer construction period.  The June 5th Bank of Canada meeting will be a very important data point for our industry and for Urban.

In the first six months of fiscal 2024, UIG incurred substantial expenses in readying for its going public process and executing on the listing on TSXV.  The largest single expense was Listing Expense, reflecting a non-cash cost of approximately $1.5M which represents the expense incurred by Urban Utilities Inc. as the in-substance purchaser of Deal Pro Capital Corp.  The Listing Expense was the single largest (one time) contributor to UIG’s loss in the interim period, with other one-time cash expenses incurred as part of the RTO, capital raise and listing.  These additional expenses included legal fees for corporate, and securities work for both entities (Urban Utilities and Deal Pro).  Accounting and auditing costs for both entities including three years of audited annual Financial Statements for Urban Utilities and significant costs to convert Urban Utilities’ internal controls over financial reporting to IFRS standards. 

The net result was a loss for the period due to lower revenues and higher costs.  UIG management’s view is that these drivers are temporal on the revenue side and mostly one-time in nature on the cost side.  Management continues to focus on the quality and timeliness of the concrete and drainage systems that it is installing for its customers while pursuing new business organically as well as within our M&A strategy.  In parallel, if the coming quarters evidence a cooling in inflation and the Bank of Canada lowers interest rates, UIG is well positioned to capitalize on any lift experienced in the sector.

Three and Six Months Ended March 31, 2024 Financial Highlights:

The Company’s key financial results for the three and six months ended March 31, 2024, are as follows:


Options granted to Board, Management and Employees:

UIG has awarded 7,972,267 incentive stock options on the Company’s common shares to directors, management, employee in accordance with the terms of the Company’s incentive Stock Option Plan. The exercise price for the options is C$0.18 per share and the grant of these options was approved by the Board of Directors on May 29th, 2024. The options will vest as to ½ at the date that is 18 months from the grant date and the remaining ½ will vest on the date that is 36 months from grant date.  The options are valid for a 5-year period from the date of grant and are subject to TSX Venture Exchange approval.

Options granted under Investor Relations Engagement:

The Company is also pleased to announce the engagement of Venture North Capital Inc. (“Venture North”) to provide investor relations and shareholder communications services. Venture North is a full-service capital markets consulting firm, headquartered in Toronto, Canada, and has experience executing strategic investor relations outreach campaigns on behalf of TSX and TSX-V listed growth companies.

The Company and Venture North have entered into a consulting agreement for an initial term of twelve months, after which it will continue on a monthly basis until terminated by either party. In consideration for its services, the Company will pay Venture North CAD $7,900 per month and grant 980,000 stock options, pursuant to the terms of the Company’s stock option plan, each exercisable at $0.17 per share and vesting quarterly in accordance with the policies of the TSX-V. This engagement is subject to TSX-V approval.


About Urban Infrastructure Group 


Urban Infrastructure Group Inc. (TSXV: 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.


For Further Information Contact:


Bill Mitoulas
Investor Relations



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 press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain acts, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Some of these risks are described under the “Caution on Forward-Looking Information” section and “Risk Factors” section of the MD&A.  Although the Company 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 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. Actual results and developments may differ materially from those contemplated by these statements. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.