SBC.PR.A: Warrants for Capital Unitholders

Brompton Split Banc Corp. has announced:

that it has filed a final prospectus for an offering of warrants to Class A shareholders of the Company. Each Class A shareholder of record on July 19, 2010 will receive one half of one warrant for each Class A share held.

One warrant will entitle the holder to purchase a Unit (consisting of one Class A share and one Preferred share of the Company) upon payment of the subscription price. The subscription price is $20.58, which is the sum of:
a) the most recently calculated NAV per Unit prior to the date of filing the final prospectus; and
b) the estimated per Unit fees and expenses of the offering.

Warrants may be exercised on or before October 22, 2010, the expiry date. The Company has applied to list the warrants (under the ticker symbol SBC.WT) and the Class A shares and Preferred shares issuable on the exercise thereof, on the TSX. Warrants will be distributed to client accounts on a best-efforts basis after the July 19, 2010 record date.

Successful completion of the warrants offering will provide the Company with additional capital that can be used to take advantage of attractive investment opportunities. It is also expected to increase the trading liquidity of the Class A shares and Preferred shares, and reduce the ongoing management expense ratio of the Company.

The intention to undertake this warrant offering was discussed in the post SBC.PR.A to Get Bigger. SBC.PR.A is tracked by HIMIPref™, but is relegated to the Scraps index on credit concerns.

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