Canadian General Investments, Limited

Canadian General Investments, Limited

December 14, 2009 17:46 ET

Canadian General Investments, Limited Declares Estimated Special Year-End Capital Gains Dividend

TORONTO, CANADA--(Marketwire - Dec. 14, 2009) - Canadian General Investments, Limited (the Company) (TSX:CGI)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) today declared a special cash capital gains dividend of $0.50 per common share. This dividend is payable on December 30, 2009 to shareholders of record on December 24, 2009.

The dividend is being filed with the TSX as an "estimated dividend" as a result of a dividend payment restriction contained in the Company's Class A, Series 2 and Series 3 Preference Share provisions. This restriction provides that the Company shall not pay a dividend on its common shares unless after giving effect thereto, the ratio of its Assets to Obligations (both as defined in the Preference Share provisions) exceeds 2.5 times. Although the coverage ratio as at the close of business on December 14, 2009 was approximately 3.6 times, as a result of market conditions, it is not certain at today's date whether the Company will still meet the coverage requirement on December 30, 2009.

The Company will make a further announcement regarding payment prior to December 30, 2009. In the event that payment of the common share dividend is deferred, the dividend will be paid to registered shareholders as of the original record date at such later time as the Company determines that it can properly be paid.

Including the quarterly income dividends of $0.06 per common share, total cash dividend payments of $0.74 per common share in 2009 represent a yield to investors of 5.0% based on the December 14, 2009 closing market price of $14.91.

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