Quadravest has announced:
Canadian Banc Corp. (the “Company”) is pleased to announce
it will undertake an offering of Preferred Shares (TSX: BK.PR.A) of the Company. The offering will be led by National Bank Financial Inc.The sales period of this overnight offering will end at 8:30 a.m. EST on May 28, 2026. The offering is expected to close on or about June 4, 2026 and is subject to certain closing conditions including approval by the TSX.
The Preferred Shares will be offered at a price of $10.33 per Preferred Share. The closing price on the TSX of the Preferred Shares on May 26, 2026 was $10.38.
Since the inception of the Company, 250 consecutive dividends have been declared for the Preferred Shares. The aggregate dividends declared on the Preferred Shares total $11.78 per share. All distributions to date have been made in tax advantaged eligible Canadian dividends.
Effective October 9, 2025, the DBRS rating on the Preferred Shares is Pfd-3 (low).
The net proceeds of the offering will be used by the Company to invest in a portfolio consisting primarily of six publicly traded Canadian Banks as follows:
Bank of Montreal Canadian Imperial Bank of Commerce Royal Bank of Canada The Bank of Nova Scotia National Bank of Canada The Toronto-Dominion Bank The Company’s Preferred Share investment objectives are to:
i. provide holders with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the prevailing Canadian prime rate plus 1.50% (minimum annual rate of 5.0% and maximum annual rate of 8.0%) based on original $10 issue price; and
ii. on or about the termination date, currently December 1, 2028 (subject to further 5 year extensions and it has been extended in the past) to pay holders the original $10 issue price of those shares.
This follows their May 12 announcement of a 110-new-for-100-old split of the Capital Units:
Canadian Banc Corp. (the “Company”) is pleased to announce its intention to complete a share split of its Class A shares (the “Share Split”) due to the Company’s strong performance. The Class A shareholders of record at the close of business on May 19, 2026 will receive 10 additional Class A shares for every 100 Class A shares held, pursuant to the Share Split. The Share Split is subject to approval by the Toronto Stock Exchange (the “TSX”).
Class A shareholders will continue to receive monthly cash distributions targeted to be at the rate of 15% annualized based on the volume weighted average market price of the Class A shares for the last 3 trading days of the preceding month following the Share Split. Since inception, Class A shareholders have received cash distributions of $25.65 per share.
The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on May 19, 2026. 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 Share Split is a nontaxable event.
The impact of the Share Split will be reflected in the net asset value per unit as at May 29, 2026.
The Company invests in a portfolio primarily consisting of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto-Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, the Company engages in a selective covered call writing program.
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated June 19, 2025, to its short form base shelf prospectus dated June 18, 2025.