An anonymous director reports

CANADIAN BANC CORP. ANNOUNCES OVERNIGHT OFFERING OF PREFERRED SHARES

Canadian Banc Corp. will undertake an offering of preferred shares of the company. The offering will be led by National Bank Financial Inc.

The sales period of this overnight offering will end at 9 a.m. EST on Nov. 16, 2023. The offering is expected to close on or about Nov. 23, 2023, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange.

The preferred shares will be offered at a price of $9.80 per preferred share to yield 8.16 per cent.

The closing price on the TSX of the preferred shares on Nov. 14, 2023, was $9.97.

Since the inception of the company, 219 consecutive dividends have been declared for the preferred shares. The aggregate dividends declared on the preferred shares total $9.97 per share. All distributions to date have been made in tax-advantaged eligible Canadian dividends.

The company has been advised by DBRS that, effective Nov. 17, 2023, the rating on the preferred shares will be Pfd-3 (low).

The net proceeds of the offering will be used by the company to invest in a portfolio consisting primarily of six publicly traded Canadian Banks as follows:

• Bank of Montreal;
• Canadian Imperial Bank of Commerce;
• Royal Bank of Canada;
• Bank of Nova Scotia;
• National Bank of Canada;
• Toronto-Dominion Bank.

The company's preferred share investment objectives are to:

• Provide holders with cumulative preferential floating-rate monthly cash dividends at a rate per annum equal to the prevailing Canadian prime rate plus 1.50 per cent (minimum annual rate of 5.0 per cent and maximum annual rate of 8.0 per cent) based on original $10 issue price;
• On or about the termination date, currently Dec. 1, 2028 (subject to further five-year extensions and it has been extended in the past), to pay holders the original $10 issue price of those shares.

A prospectus supplement to the company's short form base shelf prospectus dated May 17, 2023, containing important detailed information about the preferred shares and the Class A shares being offered will be filed with securities commissions or similar authorities in all provinces of Canada. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial adviser using the contact information for such adviser or from representatives of the agents listed herein. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces of Canada.