Canadian Life Companies Split Corp.-Preferred Shares: Important Upcoming Changes

TORONTO, ONTARIO--(Marketwire - April 26, 2012) - As a result of the approval of the capital reorganization of the Preferred shares at the shareholder meeting held on April 16, 2012, there will be important upcoming changes made to the existing Preferred shares which will increase dividends and provide an opportunity to participate in any strengthening in the Canadian life insurance sector.

All Preferred shareholders on record on the conversion date (expected to be on or about June 28) will have each existing Preferred share converted into 1) one 2012 Preferred share 2) one 2013 Warrant and 3) one 2014 Warrant with attributes as described below:

2012 Preferred Share - paying fixed cumulative preferential monthly dividends to yield 6.25% per annum on the $10.00 nominal issue price and having a repayment objective on the initial termination date of December 1, 2018 of $10.00;

2013 Warrant - each 2013 Warrant can be exercised to purchase one 2012 Preferred Share and one Class A Share (together a "Unit") for an exercise price of the lesser of $13.25 and 103% of the net asset value of the Company (the "2013 Warrant Subscription Price") on any business day during the period commencing on the day following the Conversion Date and ending on June 3 2013; and

2014 Warrant - each 2014 Warrant can be exercised to purchase one Unit for an exercise price of 105% of the 2013 Warrant Subscription Price on any business day during the period commencing on the day following the Conversion Date and ending on June 2, 2014.

As a result of the exercise strike price formula, the 2013 and 2014 warrants will initially have exercise prices that will be no more than 3% and 8.15% respectively above the net asset value per Unit of the Company at Conversion Date.

The 2013 and 2014 Warrants will be listed on the TSX and are expected to begin trading immediately after the conversion date. As such, Warrant holders will have the option of 1) exercising these Warrants over the applicable period to purchase additional Units of the Company or 2) selling the Warrants on the TSX over the applicable period.

CLC Split invests in a portfolio of four publicly traded Canadian life insurance companies as follows: Great- West Life, Industrial Alliance, Manulife Financial and Sun Life Financial. Shares held within the portfolio are expected to range between 10-30% in weight but may vary at any time.