C.A. Bancorp Inc.

C.A. Bancorp Inc.

December 16, 2010 07:00 ET

C.A. Bancorp Reminds Shareholders of Substantial Issuer Bid Expiry and Provides Update on Realization Strategy

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) -

Substantial Issuer Bid Expiry   

C.A. Bancorp Inc. (TSX:BKP) ("C.A. Bancorp" or the "Company") reminds shareholders that its substantial issuer bid (the "Offer"), pursuant to which the Company has offered to repurchase for cancellation up to $31 million in value of its outstanding common shares (the "Shares") from shareholders by way of a modified "Dutch Auction" with a range of Offer prices between Cdn. $1.80 to Cdn. $2.10 will expire at 5:00 p.m. (Toronto time) on December 17, 2010, unless extended, varied or withdrawn.

Shareholders are urged to consult the formal offer to purchase, which includes a copy of the formal valuation of the Shares prepared by Grant Thornton LLP, together with the letter of transmittal and notice of guaranteed delivery (the "Offer Documents") for the terms and conditions of the Offer and instructions for tendering Shares.

The Offer Documents were mailed to shareholders on commencement of the Offer and are also available on SEDAR at www.sedar.com.

Realization Strategy Update

C.A. Bancorp has been pursuing opportunities to accelerate the realization dates for its assets (the "Realization Strategy"). As part of its Realization Strategy, the Company has been investigating, seeking to develop and considering opportunities to realize on its holdings. As one element of that strategy the Company has engaged in a process, including discussions with third parties, concerning the possible disposition of the Company's interests in C.A. Bancorp Canadian Realty Finance Corporation ("CRFC").

There can be no assurance that the Company's discussions with prospective interested parties concerning its interests in CRFC, which are at various stages of advancement, will result in a sale transaction, or as to the value at which any such transaction may be consummated. In particular, there is no assurance that the value received for CRFC or any of the Company's assets will be at or approximate the Company's carrying values as reported in its third quarter 2010 interim financial statements.

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. The Company is currently implementing its Realization Strategy.

This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will provide to be correct. These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors published in the Company's most recent management discussion and analysis and, with respect to the realization strategy, its directors circular, both of which are available at www.sedar.com.

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

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