C.A. Bancorp Inc.
TSX : BKP

C.A. Bancorp Inc.
C.A. Bancorp Canadian Realty Finance Corporation
TSX : RF.PR.A

February 22, 2008 15:40 ET

C.A. Bancorp Inc. Announces Closing of C.A. Bancorp Canadian Realty Finance Corporation Preferred Share Offering; Raises $36 Million

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp")(TSX:BKP) is pleased to announce C.A. Bancorp Canadian Realty Finance Corporation (the "Corporation")(TSX:RF.PR.A) has closed its initial public offering (the "Offering").

Gross Proceeds

At the closing, the Corporation issued 1,440,000 Preferred Shares, Series 1 (the "Preferred Shares") for aggregate gross proceeds of $36,000,000. The agents have been granted an over-allotment option to purchase up to 216,000 Preferred Shares at any time during the next 30 days.

Trading Information

The Preferred Shares commenced trading on the Toronto Stock Exchange ("TSX") today under the symbol RF.PR.A.

The Corporation

The Corporation has been created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and mortgages in the Canadian commercial real estate sector on a tax efficient basis.

Investment Objectives

The Corporation's investment objectives with respect to the Preferred Shares are to:

i. provide holders of Preferred Shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.4219 per Preferred Share, representing a yield on the issue price of 6.75% per annum (except for the first distribution); and

ii. return the original issue price of the Preferred Shares at the end of 10 years.

The first distribution on the Preferred Shares will be $0.105 per Share and will be paid on or about April 15, 2008 to holders of Preferred Shares of record on March 31, 2008. The quarterly distributions on the Preferred Shares are expected to primarily comprise returns of capital or capital gains.

C.A. Bancorp's commitment

Upon closing of the Offering, C.A. Bancorp subscribed for 741,000 Class A shares of the Corporation such that the net proceeds of the issuance of the Class A shares, after deducting the expenses of the Offering, equal at least 11.1% of the gross proceeds of the Offering. Accordingly, C.A. Bancorp has, in effect, funded all issuance and marketing costs associated with the Offering. C.A. Bancorp is the sole holder of Class A shares, which will rank subordinate to the Preferred Shares.

C.A. Bancorp has also agreed to subscribe, or arrange subscriptions, for additional Class A shares on a quarterly basis such that the net asset value of the Corporation less deferred issue expenses plus the original issue price of the outstanding Preferred Shares (the "Original Preferred Share Issue Price") will not be less than 111% of the Original Preferred Share Issue Price.

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.

Agents

The syndicate of agents was co-led by TD Securities Inc. and CIBC World Markets Inc. and included BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Canaccord Adams, HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., Dundee Securities Corporation, Wellington West Capital Inc., Desjardins Securities Inc., GMP Securities L.P., Research Capital Corporation and Richardson Partners Financial Limited.

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 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 ability of the Corporation to pay quarterly distributions. Due to the many risks and uncertainties, C.A. Bancorp cannot assure that the forward-looking statements contained in this news release will be realized. C.A. Bancorp undertakes 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 final prospectus dated January 31, 2008 relating to these securities has been filed with the securities regulatory authority in each of the provinces and territories of Canada. 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.



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