March 19, 2014 09:00 ET
TORONTO, ONTARIO--(Marketwired - March 19, 2014) - Canadian Banc Corp. ("the Company") declares its monthly distribution of $0.10650 for each Class A share and $0.04167 for each Preferred share. Distributions are payable April 10, 2014 to shareholders on record as of March 31, 2014.
Under the distribution policy announced September 17, 2013, the monthly dividend payable on the Class A shares is determined by applying a 10% annualized rate on the volume weighted average market price (VWAP) of the Class A shares over the last 3 trading days of the preceding month. As a result, Class A shareholders of record on March 31, 2014 will receive a dividend of $0.10650 per share based on the VWAP of $12.78 over the last 3 trading days in February, payable on April 10, 2014. The yield will remain stable at 10% (based on the VWAP) under this new distribution policy.
There were no changes to the Preferred Share dividend policy or the Class A dividend threshold policy. Preferred shares continue to receive prime plus 0.75% with a minimum rate of 5%.
Since inception Class A shareholders have received a total of $7.54 per share and Preferred shareholders have received a total of $4.77 per share inclusive of this distribution, for a combined total of $12.31 per unit.
The Company invests in a portfolio of six publicly traded Canadian Banks as follows: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, Toronto- Dominion Bank. Shares held within the portfolio are expected to range between 5-20% in weight but may vary at any time. To generate additional returns above the dividend income earned on the portfolio, The Company will engage in a selective covered call writing program.
Canadian Banc Corp.Investor Relations416-304-4443 or Toll Free: 1-877-4-Quadra (1-877-478-2372)www.primerateplus.com
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