An anonymous director reports

CANADIAN BANC CORP. ANNOUNCES SUCCESSFUL OVERNIGHT OFFERING

Canadian Banc Corp. has completed the overnight marketing of preferred shares and Class A shares of the company. Total gross proceeds of the offering are expected to be approximately $60.0-million.

The offering is being led by National Bank Financial Inc.

The sales period of the overnight offering has ended.

The offering is expected to close on or about Oct. 22, 2026, and is subject to certain closing conditions, including approval by the Toronto Stock Exchange.

The preferred shares were offered at a price of $10.35 per preferred share, and the Class A shares were offered at a price of $15.40 per Class A share.

The closing price on the TSX of each of the preferred shares and Class A shares on Oct. 14, 2026, was $10.41 and $15.58, respectively.

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 investment objectives are as follows.

Preferred shares:

1. 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; and
2. 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.

Class A shares:

1. To provide holders with regular monthly cash distributions currently targeted to be at the annualized rate of 15 per cent based upon the volume-weighted average trading price of the Class A shares for the last three trading days of the preceding month; and
2. 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 issue price of those shares.

A prospectus supplement to the company's short form base shelf prospectus dated June 18, 2025, 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 agent listed above. 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.