PrefBlog

On April 23, 2012, Quadravest announced:

Canadian Banc Corp (“The Company”) is pleased to announce that it will issue warrants (“Warrants”), to all Class A Shareholders. Each Class A Shareholder will be entitled to receive one Warrant for each Class A Share held as of the record date of May 4, 2012. Three Warrants will entitle the holder to purchase a Unit consisting of one Class A Share and one Preferred Share for $20.00. The Warrants are exercisable at anytime up to at 5:00 p.m. (Toronto time) on April 30, 2013, the expiry date. If all the Warrants are exercised, the Company will issue approximately 2,257,484 Units and will receive net proceeds of $44,370,316. The net proceeds from the subscription of Units will be used to acquire additional securities in accordance with the Company’s investment objectives, strategies and restrictions. By raising additional cash through this offering it allows the Company to capitalize on certain attractive investment opportunities that may arise over the next few months. In addition, if the full subscription was exercised the offering could increase the trading liquidity of the Company and reduce the management expense ratio.

Both the Preferred Shares and Class A Shares trade on the Toronto Stock Exchange (the “TSX”) under the symbol “BK.PR.A” and “BK” respectively. The Warrants will be listed on the TSX under the ticker symbol “BK.WT”. It is expected that Warrants will commence trading on May 7, 2012 and continue trading until 12:00 (EST) on April 30, 2013.

These warrants are just barely in the money, with the NAV as of March 28 being $20.20 ($20.08 Diluted). Given that TTFS, the S&P/TSX Capped Financial Index, is down 1.70% in the month to April 12, they may be out of the money at the moment, but I haven’t checked.

Update, 2014-2-21: According to the 13H1 Financials:

Pursuant to a short form prospectus, each Class A shareholder on record on May 4, 2012 received one warrant, for no consideration, for each Class A share held. Three warrants could be exercised to purchase a unit (one Class A share and one Preferred share) for an exercise price of $20.00 on any business day until April 30, 2013. A total of 6,772,453 warrants were issued on May 4, 2012. The warrants expired on April 30, 2013, and a total of 2,196 warrants were exercised.

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