Sentry Select Capital Corp.

Sentry Select Capital Corp.
C.A. Bancorp Inc.
TSX VENTURE : BKP

C.A. Bancorp Inc.

November 17, 2006 14:45 ET

C.A. Bancorp Inc. 'TSX-V:BKP' Files Final Prospectus for a Common Share Offering at $0.30 a Share

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 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 a final short form prospectus for an offering (the "Offering") of common shares for gross proceeds of between a minimum of $10,000,000 and a maximum of $50,000,000 has been filed with the securities regulatory authorities in each of the provinces and territories of Canada.

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.

Offering Price

The offering price is $0.30 per common share.

Closing

It is expected that the closing of the Offering will take place on or about November 27, 2006 or such earlier or later date as may be agreed to by the Company and the Agents.

Over-Allotment Option

The Company has granted to the Agents an option, exercisable in whole or in part at the sole discretion of the Agents until 30 days after closing of the Offering, enabling them to purchase up to an additional 25,000,000 common shares (assuming the maximum offering is completed) at the offering price, for a maximum amount of $7,500,000.

Investment Of Management

Management of the Company, together with Frank Crothers (who has been appointed a director of the Company effective December 1, 2006), intends to purchase, in aggregate, between 10% and 20% of the common shares offered, assuming the maximum offering is completed.

Trading Information

C.A. Bancorp Inc. common shares trade on the TSX Venture Exchange under the symbol BKP. As of November 16, 2006, the closing price on the TSX-V was $0.37 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 includes 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
    Website: www.cabancorp.com