An anonymous director reports

PRIME DIVIDEND CORP. CLASS A SHARE CONSOLIDATION AND MONTHLY DIVIDEND DECLARATION FOR CLASS A & PREFERRED SHARES

Prime Dividend Corp. has declared a Class A share consolidation and monthly distributions on Class A shares and preferred shares.

In connection with the extension of the termination date of the company, a special retraction right was offered 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. In aggregate, more preferred shares were tendered for retraction than Class A shares. The purpose of the share consolidation is to maintain the requirement that an equal number of Class A shares and preferred shares remain outstanding at all material times.

Immediately after the special retraction payment on Dec. 15, 2023, there were 605,019 preferred shares and 831,841 Class A shares outstanding. In order to restore an equal amount of shares outstanding for each class, Class A shareholders will receive approximately 0.727325294 postconsolidation Class A share for each Class A share.

In the event that the share consolidation would otherwise result in the issuance of fractional shares, no fractional Class A shares will be issued, and the number of Class A shares each holder shall receive will be rounded down to the nearest whole number. The consolidation is a non-taxable event.

It is expected that the Class A shares will trade on a postconsolidation basis at the opening of trading on Dec. 22, 2023.

The aggregate intrinsic value of the Class A shareholders' holdings will remain the same and as a result, the net asset value per Class A share will increase on a proportionate basis for each postconsolidation share on the consolidation date. As at the consolidation date, the resultant increase in the net asset value per Class A share will have the impact of increasing the asset coverage ratio for the preferred shares.

The impact of the Class A share consolidation will be reflected in the next reported net asset value per unit as at Dec. 29, 2023.

The company is pleased to announce that it has reinstated the monthly Class A share distribution of 4.182 cents for each postconsolidation Class A share and also declares 6.667 cents for each preferred share. Distributions are payable on Jan. 10, 2024, to shareholders on record as at Dec. 29, 2023.

In accordance with the current policy, the postconsolidation Class A share distribution has been determined by applying a 10.00-per-cent annualized rate on the volume weighted average market price of the Class A shares over the last five trading days of the preceding month, adjusted by the consolidation factor of 0.727325294.

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.

Since inception Class A shareholders have received a total of $13.30 per share and preferred shareholders have received a total of $10.09 per share inclusive of this distribution, for a combined total of $23.39.

We seek Safe Harbor.