TORONTO, ONTARIO -- (MARKET WIRE) -- 10/01/08 --
C.A. Bancorp Inc. (TSX: BKP)("C.A. Bancorp") and C.A. Bancorp Canadian Realty Finance Corporation (TSX: RF.UN)(the "Corporation") are pleased to announce that the Corporation has issued an additional 200,000 Units for gross proceeds to the Corporation of $2,000,000 pursuant to the exercise by the Agents of their over-allotment option to acquire additional Units. Each Unit consists of one Class A Share and one warrant (a "Warrant") to purchase a Series 1, Preferred Share (a "Preferred Share").
The over-allotment option was granted to the Agents by the Corporation to cover over-allotments under the terms of the Corporation's public offering completed on September 12, 2008 (the "Offering").
Gross Proceeds
Including the exercise of the over-allotment option, the total gross proceeds raised from the Offering are $29,000,000.
Trading Information
The securities forming a Unit trade together on the Toronto Stock Exchange ("TSX") under the symbol RF.UN as a Unit and cannot be transferred except as part of a Unit and the Warrants may not be exercised for the first 30 days following the closing of the Offering. Thereafter, the Class A Shares and the Warrants will trade separately on the TSX under the symbols RF.A and RF.WT, respectively.
The Class A Shares
The Corporation's investment objectives with respect to the Class A Shares are to:
i. Pay quarterly cash distributions, initially expected to be $0.19 per quarter per Class A Share or 7.6% per annum, based on the original issue price of $10.00 per Unit; and
ii. To preserve the net asset value of the Class A Shares.
The Warrants
Each Warrant will entitle the holder to purchase one Preferred Share at a subscription price of $23.75 at any time on or before 4:00 p.m. (Toronto time) on September 30, 2011.
The Preferred Shares
The Corporation's investment objectives with respect to the Preferred Shares are to:
i. Pay fixed cumulative preferential quarterly cash distributions in the amount of $0.4219 per Preferred Share representing a yield of 6.75% per annum on the original issue price of $25.00 per Preferred Share; and
ii. Return the original issue price of the Preferred Shares ($25.00 per Share) on March 31, 2018.
Agents
The syndicate of agents was co-led by Canaccord Capital Corporation, CIBC World Markets Inc., and National Bank Financial Inc., and included TD Securities Inc., Blackmont Capital Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Inc., Dundee Securities Corporation, GMP Securities L.P., Industrial Alliance Securities Inc., Jory Capital Inc., Laurentian Bank Securities Inc., Manulife Securities Incorporated, Desjardins Securities Inc., Research Capital Corporation and Richardson Partners Financial Limited.
C.A. Bancorp Canadian Realty Finance Corporation
The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax efficient basis.
C.A. Bancorp Inc. C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.
C.A Bancorp manages the Corporation through its wholly-owned subsidiary C.A. Bancorp Ltd.
Certain statements included in this news release constitute forward-looking statements including those identified by the expressions, "will", "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions. The forward looking statements are not historical facts but represent C.A. Bancorp's, the Manager's or the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties and our based on a number of assumptions that could cause actual results or events to differ materially from current expectations, including the matters discussed in the "Risk Factors" and other sections of the final prospectus of the Corporation dated August 27, 2008 (and the documents incorporated by reference therein) and including without limitation, interest rate fluctuations, the availability of investments, competition, levels of return earned on the underlying portfolio of investments, change in financial position of the Corporation or C.A. Bancorp, reliance on key personnel, ability of the Corporation to meet its investment objectives, the ability of the Corporation to pay quarterly distributions, utilization of the NCIB, leverage ratios, and the ability of C.A. Bancorp to subscribe for or obtain subscriptions for Class A Shares of the Corporation. Due to the many risks and uncertainties, C.A. Bancorp cannot assure that the forward-looking statements contained in this news release will be realized. C.A. Bancorp undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law. This Offering was made only by prospectus. A final prospectus dated August 27, 2008 relating to these securities has been filed with the securities regulatory authority in each of the provinces and territories of Canada. Important information concerning the Offering is contained in the prospectus. Obtain a copy from your financial advisor or on SEDAR at www.sedar.com and read the prospectus before investing.
C.A. Bancorp Inc.
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166
Contacts:
C.A. Bancorp Inc.Paolo De Luca
Chief Financial Officer
1-866-388-5985
(416) 861-8166 (FAX)
Email: info@cabancorp.com
Website: www.cabancorp.com
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