C.A. Bancorp Inc. Announces Reimbursement of Expenses
TORONTO, ONTARIO -- (MARKET WIRE) -- 02/03/09 -- C.A. Bancorp Inc. (TSX: BKP) ("C.A. Bancorp") announces that it will reimburse Sentry Select Capital Corp. ("Sentry Select") for the salaries of certain individuals whose full time services are provided to Charter Real Estate Investment Trust ("Charter") by Sentry Select, on behalf of C.A. Bancorp. As approved by the independent members of C.A. Bancorp's board of directors (the "Independent Directors"), this change becomes effective February 1, 2009.
As a result of the reimbursement, C.A. Bancorp will have additional expenses of approximately $700,000 per annum, which is an estimate based on current data.
C.A. Bancorp, through its wholly-owned subsidiary, C.A. Realty Management Inc., is obligated to provide certain services and personnel to Charter. The salaries of such individuals have, to date, been borne by Sentry Select under the terms of an Administration Agreement between C.A. Bancorp and Sentry Select. However, under the terms of the Administration Agreement, Sentry Select has the right to request reimbursement for the salaries of such individuals.
The decision to reimburse such salaries was made after C.A. Bancorp received a notice (the "Notice") from Sentry Select under the terms of the Administration Agreement. The Administration Agreement provides Sentry Select with the right to request reimbursement for the salaries of certain employees providing services to C.A. Bancorp. To date, Sentry Select has been paying the salaries of all of such employees directly since their respective dates of hire.
Sentry Select continues to provide administration services and staffing to C.A. Bancorp under the Administration Agreement.
As required by the terms of the Administration Agreement, the Independent Directors considered C.A. Bancorp's options in response to the Notice. Following such consideration and with advice from independent legal counsel, Macleod Dixon LLP, it was determined that C.A. Bancorp was obligated to reimburse the employee salaries as identified by the Notice if it wished to continue to have access to such employees.
Trading information
C.A. Bancorp's common shares trade on the Toronto Stock Exchange under the symbol BKP.
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.
This news release contains forward-looking statements. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp's beliefs regarding future events. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue", similar words or the negative thereof, or variations of such words and phrases that certain actions, events or anticipated outcomes "may", "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The future business, operations and performance of C.A. Bancorp discussed herein could differ materially from those expressed or implied by such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, interest rates, tax related matters, loss of personnel and reliance on key personnel. C.A. Bancorp cautions that risk factors discussed in applicable continuous disclosure filings required by law that C.A. Bancorp has made and filed on SEDAR should also be considered carefully and that undue reliance not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by C.A. Bancorp. The cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.