RF.PR.A: 2.7-million Warrants Sold

C. A. Bancorp has announced:

the Corporation has closed a public offering today (the “Offering”). The Corporation offered units (the “Units”) at a price of $10.00 per Unit. Each Unit consists of one Class A Share and one warrant (a “Warrant”) to purchase a Series 1, Preferred Share (a “Preferred Share”).

At the closing, the Corporation issued 2,700,000 Units for aggregate gross proceeds of $27,000,000. The gross proceeds consisted of $23,181,260 in cash and $3,818,740 in publicly listed Canadian common shares and investment grade securities received under the exchange option of the Offering.

The agents for the Offering have been granted an over-allotment option to purchase up to 405,500 Units at any time during the next 30 days.

The securities forming a Unit will trade together on the Toronto Stock Exchange (“TSX”) under the symbol RF.UN as a Unit and cannot be transferred except as part of a Unit and the Warrants may not be exercised for the first 30 days after the date hereof. Thereafter, the Class A Shares and the Warrants will trade separately on the TSX under the symbols RF.A and RF.WT, respectively.

Each Warrant will entitle the holder to purchase one Preferred Share at a subscription price of $23.75 at any time on or before 4:00 p.m. (Toronto time) on September 30, 2011.

The Manager uses the maturity value of the aggregate number of Preferred Shares issued and outstanding and compares that value to the tangible net book value of the aggregate number of Class A Shares issued and outstanding as a measure of the debt (the Preferred Shares) to equity (the Class A Shares) ratio of the Corporation (the “Leverage Ratio”). As at June 30, 2008, the Leverage Ratio was 8.8 to 1.

The Offering caused the debt to equity ratio or the Leverage Ratio of the Corporation to decrease. As at the date hereof, the Leverage Ratio is approximately 1.2 to 1.

As previously reported on PrefBlog, there was a 2-million unit minimum on the offering.

RF.PR.A is not tracked by HIMIPref™

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