C.A. Bancorp Inc.

C.A. Bancorp Inc.
C.A. Bancorp Canadian Realty Finance Corporation

August 18, 2008 16:49 ET

C.A. Bancorp Canadian Realty Finance Corporation Changes Exercise Price of Warrants Offered Under Preliminary Prospectus From $24.50 to $23.75

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp") (TSX:BKP) and C.A. Bancorp Canadian Realty Finance Corporation (the "Corporation") (TSX:RF.PR.A) announce a change to the exercise price of the warrants being offered under a preliminary prospectus dated July 21, 2008.

The Offering

The Corporation is offering units (the "Units") at a price of $10.00 per Unit. Each Unit consists of one Class A Share and one warrant (a "Warrant") to purchase one Series 1, Preferred Share (the "Preferred Shares"). Prospective purchasers may purchase Units by (i) cash payment, or (ii) an exchange of eligible securities of certain issuers at the applicable exchange ratio.

The Warrants

Each Warrant will entitle the holder to purchase one Preferred Share at a subscription price of $23.75 at any time on or before 4:00 p.m. (Toronto time) on September 30, 2011. Previously, as filed in the preliminary prospectus, the subscription price was set at $24.50. The revised subscription price will be changed to $23.75 upon filing of the final prospectus.

C.A. Bancorp Canadian Realty Finance Corporation

The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax efficient basis.

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

C.A Bancorp Inc. manages the Corporation through its wholly-owned subsidiary C.A. Bancorp Ltd. (the "Manager").

Certain statements included in this news release constitute forward-looking statements including those identified by the expressions, "will", "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions. The forward looking statements are not historical facts but represent C.A. Bancorp's, the Manager's or the Corporation's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed in the "Risk Factors" and others sections of the preliminary prospectus of the Corporation dated July 21, 2008 and including without limitation, interest rate fluctuations, the availability of investments, competition, levels of return earned on the underlying portfolio of investments, change in financial position of the Corporation or C.A. Bancorp, reliance on key personnel, ability of the Corporation to meet its investment objectives, the ability of the Corporation to pay quarterly distributions, utilization of the normal course issuer bid, leverage ratios, and the ability of C.A. Bancorp to subscribe for or obtain subscriptions for Class A shares of the Corporation. Due to the many risks and uncertainties, C.A. Bancorp, the Manager and the Corporation cannot assure that the forward-looking statements contained in this news release will be realized. C.A. Bancorp, the Manager and the Corporation undertake no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

A preliminary prospectus dated July 21, 2008 relating to these securities has been filed with the securities regulatory authority in each of the provinces and territories of Canada but has not yet become final for the purpose of a distribution to the public. Important information concerning this offering is contained in the prospectus. Obtain a copy from your financial advisor or on SEDAR at www.sedar.com and read the prospectus before investing.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or an acceptance of an offer to buy the securities in any province or territory of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or other similar authority in such province or territory.

C.A. Bancorp Inc.
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

Contact Information