TORONTO: C.A. Bancorp Inc. (formerly
Masthead Resources Ltd.) is pleased to announce that its common shares
are now trading on the TSX Venture Exchange under the symbol BKP. The
price per share for C.A. Bancorp Inc. at the close of the market on
February 7, 2006, was $0.35.
Investment
Objectives and Strategy: C.A. Bancorp Inc. operates two businesses: a
merchant bank and a market intermediary (through its wholly owned
subsidiary C.A. Bancorp Ltd.).
As
a merchant bank, C.A. Bancorp Inc. will pursue a strategy of making
equity investments in Canadian small- and middle-market, public and
private companies that exhibit the potential for substantial capital
appreciation through improved management, financial performance and
enhanced strategic positioning. Among other strategies, C.A. Bancorp
Inc. will target undervalued companies that are underperforming due to
poor management execution or inadequate capital structure, or are
undergoing a significant transition, such as a change in senior
management or a succession in ownership.
It
is anticipated that C.A. Bancorp Inc. will make investments of $0.5
million to $10 million in companies with enterprise values ranging from
$20 million to $100 million. Transaction types may include open-market
purchases and private placement of securities of public issuers,
management buyouts, equity investment in private issuers, going-private
transactions and restructurings. Typically, C.A. Bancorp Inc. will seek
to exercise significant influence through positions on the boards of
directors of portfolio companies, as well as through structural and
governance rights in privately held companies. Effective control of
each portfolio company will be sought, either through a shareholders’
agreement, board representation or significant ownership, to ensure
that C.A. Bancorp Inc. can direct change, if necessary. In all cases,
board representation, governance standards and, in the case of the
privately held companies, shareholder rights and protections will be
sought.
C.A. Bancorp
Inc. will invest in the form of subordinated debentures, convertible
debentures, preferred shares, common equity or similar equity-like
instruments.
C.A.
Bancorp Inc. intends to be an active and constructive partner, whose
executives will work together with management of portfolio companies to
implement strategic, financial and governance initiatives with a view
to creating significant value.
As
a market intermediary, C.A. Bancorp Inc. will find equity and/or debt
financing for junior and mid-market public and private companies in
various industry sectors, including oil and gas, and mining. Contact Information:
Mark Gardhouse, President, C.A. Bancorp Ltd. (media inquiries) or Katherine Pawling (Corporate Secretary)
Tel: 1-866-388-5985 Fax: 416-364-5615
info@cabancorp.com The securities offered hereby have not been
registered under the U.S. Securities Act of 1933, as amended and may
not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any state
in which such offer, solicitation or sale would be unlawful.
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