Brompton Split Banc Corp.
TSX : SBC
TSX : SBC.PR.A

Brompton Split Banc Corp.

December 01, 2017 12:04 ET

Brompton Split Banc Corp. Completes Preferred Share Private Placement

TORONTO, ONTARIO--(Marketwired - Dec. 1, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Brompton Split Banc Corp. (the "Company") (TSX:SBC)(TSX:SBC.PR.A) is pleased to announce that it has completed a private placement of preferred shares for aggregate gross proceeds of approximately $5.5 million (the "Private Placement"). Pursuant to the Private Placement, 549,387 preferred shares were offered to investors at a price of $10.08 per preferred share.

The preferred shares were offered in order to maintain an equal number of class A shares and preferred shares outstanding following the November 29, 2017 special retraction. As a result of the successful completion of the Private Placement, a greater number of shares of the Company will remain outstanding, which will maintain more market liquidity for both holders of the preferred shares and class A shares of the Company and also help sustain a lower overall management expense ratio.

Over the last five years to October 31, 2017, the preferred shares have delivered a 4.6% per annum total return based on NAV, outperforming the total return of the S&P/TSX Preferred Share Index by 3.1% per annum with lower volatility. Since inception, the preferred shares have provided a total return of 5.1% per annum(1).

The Company invests in a portfolio, on an approximately equal weight basis, in common shares of 6 Canadian Banks: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank.

About Brompton Funds

Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton's investment solutions include TSX traded funds, mutual funds, and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton's investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.

  1. See Standard Performance Data table below. Source: Brompton, Bloomberg, as at October 31, 2017; assumes reinvestment of distributions at net asset value.
Brompton Split Banc Corp.
NAV Performance to October 31, 2017
1 Yr 3 Yrs 5 Yrs 10 Yrs Incep.
(16/11/05)
Class A Shares (TSX:SBC) 34.8% 14.1% 21.3% 11.6% 12.3%
S&P/TSX Capped Financials Index 21.8% 10.7% 15.1% 7.4% 8.8%
S&P/TSX Composite Index 11.5% 6.2% 8.4% 3.9% 6.5%
Preferred Shares (TSX:SBC.PR.A) 4.6% 4.6% 4.6% 5.0% 5.1%
S&P/TSX Preferred Share Index 16.1% 1.0% 1.5% 3.1% 2.5%

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the funds. You can find more detailed information about the Company in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

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