An anonymous director reports

PRIME DIVIDEND CORP. MONTHLY DIVIDEND DECLARATION FOR PREFERRED SHARE

Prime Dividend Corp. has declared its monthly distribution of 6.667 cents for each preferred share. Distributions are payable Oct. 10, 2023, to shareholders on record as at Sept. 29, 2023.

There will not be a distribution paid to the Class A shares for Sept. 29, 2023, as per the prospectus which states no regular monthly dividends will be paid on the Class A shares in any month as long as the net asset value per unit is equal to or less than $15.00.

Preferred shareholders receive prime plus 2.35 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 PDV.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 PDV.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 $13.26 per share and preferred shareholders have received a total of $9.89 per share inclusive of this distribution, for a combined total of $23.15.

The company invests in a portfolio of high-yielding Canadian companies as shown in the attached table.