An anonymous director reports

CANADIAN BANC CORP. MONTHLY DIVIDEND DECLARATION FOR CLASS A & PREFERRED SHARE

Canadian Banc Corp. has declared its monthly distribution of 16.113 cents for each Class A share and 6.667 cents for each preferred share. Distributions are payable Oct. 10, 2023, to shareholders on record as at Sept. 29, 2023.

Under the distribution policy announced in November, 2021, the monthly dividend payable on the Class A shares is determined by applying a 15-per-cent annualized rate on the volume-weighted average market price (VWAP) of the Class A shares over the last three trading days of the preceding month. As a result, Class A shareholders of record on Sept. 29, 2023, will receive a dividend of 16.113 cents per share based on the VWAP of $12.89 payable on Oct. 10, 2023. The yield will remain stable at 15.00 per cent (based on the VWAP) under this distribution policy.

Preferred shareholders will receive prime plus 1.50 per cent with a minimum rate of 5.00 per cent and a maximum rate of 8.00 per cent.

As previously announced on March 2, 2023, the termination date of the company was extended a further five years from Dec. 1, 2023, to Dec. 1, 2028. In connection with the extension, the company has the right to amend the annual rate of cumulative preferential monthly dividends to be paid to the BK.PR.A preferred shares for the five-year renewal period, commencing Dec. 1, 2023. In keeping with market yields for preferred shares with similar terms, there will be no change to the rate of the BK.PR.A preferred shares.

In relation to the term extension, the company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the Nov. 30, 2023, net asset value per unit. Alternatively, shareholders may sell their shares for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.

Since inception, Class A shareholders have received a total of $21.06 per share, and preferred shareholders have received a total of $9.90 per share inclusive of this distribution, for a combined total of $30.96.

The company invests in a portfolio of six publicly traded Canadian banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia and Toronto-Dominion Bank. Shares held within the portfolio are expected to range between 5 and 20 per cent in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, the company engages in a selective covered-call writing program.

Distribution details

Class A share (BK):  16.113 cents

Preferred share (BK.PR.A):  6.667 cents

Record date:  Sept. 29, 2023

Payable date:  Oct. 10, 2023