C.A. Bancorp Inc.
TSX : BKP

C.A. Bancorp Inc.

June 25, 2008 08:30 ET

C.A. Bancorp Inc. (TSX:BKP) Announces $5 Million Investment in Everus Communications Inc.

TORONTO, ONTARIO--(Marketwire - June 25, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp")(TSX:BKP) is pleased to announce a $5,000,000 investment in Everus Communications Inc. ("Everus"), a privately held company based in Kitchener, Ontario. As the largest wireless broadband provider in rural Ontario, Everus seeks to provide affordable, accessible and efficient broadband access for public and private sectors in rural areas that cannot access broadband through digital subscriber lines ("DSL") or cable. The proceeds of C.A. Bancorp's investment will be used to expand the geographic footprint of Everus' coverage area as well as improve existing network infrastructure and back-office capabilities.

Established in 2001, Everus utilizes WiMAX technology to provide broadband services to customers in rural areas. WiMAX is a standard of wireless communications that can transmit data over long distances (up to 20 km). Using WiMAX technology, Everus is able to provide broadband connections to customers that are not currently served by conventional infrastructure (cable, DSL or fiber optic networks). With over 62 transmission towers stretching through Southwestern Ontario, Everus can provide broadband services to municipal, commercial and residential customers at speeds that rival connections offered by the incumbent telecommunication providers.

Currently, Everus is focusing on infrastructure expansion within Dufferin and Grey counties, aided by partial funding under the Ontario Municipal Rural Broadband Partnership Program. These efforts will allow Everus to begin fully servicing customers throughout those counties as new transmission towers come on-line in the coming months. Everus continues to look forward to expanding its services into adjacent counties as well as improving coverage in its existing territories. Currently, Everus has customers in all or part of 11 counties including: Huron, Perth, Grey, Bruce, Dufferin, Wellington, and Waterloo counties.

"We are very excited to enter into this partnership with C.A. Bancorp. There is a tremendous opportunity to utilize WiMAX technology in rural areas to meet the customer demand for broadband access in small communities and rural areas. Having strong financial backing will allow Everus to expand its customer base through growth in its existing service territories and expansion into new ones," said David de Weerdt, President of Everus.

"All businesses and households, including ones in rural areas, are striving to participate in the knowledge economy. With financial backing, Everus has a significant opportunity to provide broadband service to rural households that cannot access it from traditional infrastructure like cable, DSL, or fiber optic networks. We are excited about the opportunities in front of Everus and its strong management team," said Mark MacDonald, Managing Director, Private Investments of C.A. Bancorp.

The Investment:

The investment consists of $2,500,000 that has funded on June 24, 2008 and a further $2,500,000 to be advanced over the next nine months in a series of tranches.

Everus:

Everus Communications Inc. is the largest rural WiMAX broadband provider in Southwestern Ontario with over 62 transmission towers. Everus seeks to provide affordable, accessible and efficient broadband access for public and private sectors in rural areas that cannot access broadband through DSL or cable. For more information, please visit www.everus.ca.

C.A. Bancorp:

C.A. Bancorp Inc. 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.

This news release contains forward-looking statements with respect to matters concerning the business, operations, and strategy of C.A. Bancorp. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent the C.A. Bancorp's beliefs regarding future events. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue", similar words or the negative thereof, or variations of such words and phrases that certain actions, events or anticipated outcomes "can", "may", "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The future business, operations and performance of C.A. Bancorp discussed herein could differ materially from those expressed or implied by such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, the ability to obtain government and regulatory approvals, Everus' performance and general economic and market factors. C.A. Bancorp cautions that risk factors discussed in applicable continuous disclosure filings required by law that C.A. Bancorp has made and filed on SEDAR including its MD&A and annual information form, should also be considered carefully and that undue reliance not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by C.A. Bancorp. The cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf. Unless otherwise stated, all forward looking statements speak only as of the date of this news release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.



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

  • C.A. Bancorp
    Mark MacDonald
    Managing Director, Private Investments
    1-866-388-5985
    (416) 861-8166 (FAX)
    or
    C.A. Bancorp
    Jake Trainor
    Vice President
    1-866-388-5985
    (416) 861-8166 (FAX)
    Email: info@cabancorp.com
    Website: www.cabancorp.com
    or
    Everus
    David de Weerdt
    President
    1-800-230-7778 ext 2210
    (519) 334-3133 (FAX)
    Email: info@everusinc.com
    Website: www.everus.ca