C.A. Bancorp Inc.
TSX VENTURE : BKP

C.A. Bancorp Inc.

November 27, 2006 09:38 ET

C.A. Bancorp Inc. 'TSX-V: BKP' Closes Common Share Offering; Raises $38 Million

TORONTO, ONTARIO--(CCNMatthews - Nov. 27, 2006) -

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

C.A. Bancorp Inc. (the "Company")(TSX VENTURE:BKP) is pleased to announce that it has closed its common share offering.

Gross proceeds

At the closing, the Company issued 126,922,290 common shares for total gross proceeds of $38,076,687. The agents have been granted an over-allotment option to purchase up to 19,038,343 common shares at any time during the next 30 days.

Use of proceeds

The Company intends to use the net proceeds of the Offering: (i) to fund direct investments; (ii) to establish, invest in and manage private equity funds and structured products; and (iii) for general corporate and working capital purposes.

Trading information

C.A. Bancorp Inc. common shares trade on the TSX Venture Exchange under the symbol BKP. As of November 23, 2006, the closing price on the TSX-V was $0.30 per common share.

C.A. Bancorp Inc.'s investment objectives and strategy

C.A. Bancorp Inc. is a merchant bank established to provide investors with access to a range of private equity and other alternative investment opportunities typically available only to large institutional and high-net-worth investors. The Company is focused on investments, either directly or through entities managed and/or sponsored by it, across a broad range of industries.

The Company's business model is based on two types of revenue-generating investment activities:

- direct investing, to generate capital gains realized from the sale of investments and interest payments, management fees, syndication fees and dividends paid by portfolio companies; and

- fund management, to generate management fees and performance bonuses paid by private equity funds and structured products managed and/or sponsored by the Company.

The Company expects to focus on investment opportunities in the industrials, real estate, infrastructure and financial services sectors.

Sentry Select Capital Corp.

C.A. Bancorp Inc. is an affiliate of Sentry Select Capital Corp., a wealth management company providing investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations (including preferred securities and debentures), 19 principal-protected notes, 16 mutual funds and four flow-through limited partnerships. As of October 31, 2006, the firm had over $8.0 billion in gross assets under management.

Agents

A syndicate of agents included National Bank Financial Inc., CIBC World Markets Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., Blackmont Capital Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc. and Raymond James Ltd.

The securities offered hereby 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 an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.



The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • C.A. Bancorp Inc.
    Mark Gardhouse
    President
    1-866-388-5985
    (416) 364-2398 (FAX)
    or
    C.A. Bancorp Inc.
    Paolo De Luca
    Chief Financial Officer
    1-866-388-5985
    (416) 364-2398 (FAX)
    Email: info@cabancorp.com
    Webiste: www.cabancorp.com