GlobalBanc Advantaged 8 Split Corp.
TSX : GBA
TSX : GBA.PR.A

GlobalBanc Advantaged 8 Split Corp.

March 10, 2011 17:20 ET

GlobalBanc Advantaged 8 Split Corp.: Press Release

TORONTO, ONTARIO--(Marketwire - March 10, 2011) - GlobalBanc Advantaged 8 Split Corp. (TSX:GBA)(TSX:GBA.PR.A) (the "Company") announces that no distribution will be paid on the Preferred Shares or on the Class A Shares for the quarter ending March 31, 2011 and that it will restate its financial statements for the year ended December 31, 2009.

Dividend

As it did in the preceding quarters, the Board has concluded that, having regard to the Company's expenses, the anticipated cash flow is not sufficient to allow for dividend payments without possibly eroding the Fund's portfolio investments. The Board of Directors will continue to monitor the Bloomberg Dividend Forecast, the Company's cash flow, redemptions and changes in its expenses in considering whether to reinstate the dividends payable on the Preferred Shares in the future.

Unitholders are reminded that the Preferred Shares, as a class, are entitled to receive, as and when paid in the discretion of the Board of Directors of the Company, cumulative dividends not exceeding $0.1125 per share per quarter. The shortfall below the prescribed amount of the Preferred Share dividend (currently, $1.04 per Preferred Share in aggregate) will accumulate and, in accordance with the terms of the Preferred Shares and the Class A Shares, will be paid in priority to any payments on the Class A Shares.

Financial Statements

The Company also announces that it will restate its financial statements for the year-ending December 31, 2009 because it identified two errors in those statements. The net effect of these two errors was to overstate the NAV per Unit (comprised of a Preferred Share and Class A Share) and the Redemption value per Preferred Share each, as at December 31, 2009, by approximately $0.12 or approximately 1.8% during the period between December 31, 2009 and January 11, 2010. For periods commencing on January 12, 2010 (and following), the NAV per Unit were correctly reflected.

The Company has determined that there was a cut-off error relating to the valuation of the Forward Agreement and a classification error relating to the Redemptions Payable. The amount included in Receivable from the counterparty under the Forward Agreement of $225,000 was incorrectly not reflected as a reduction in the value of the Forward Agreement. In addition, a reclassification difference of $120,160 was noted whereby an amount relating to the Redemptions Payable was incorrectly netted against the Receivable from Counterparty under the Forward Agreement.

The overstatement did not have any impact on the annual and monthly redemptions during this period. The Board has concluded that the overstatement was not material but wished to bring it to the attention of shareholders.

This press release contains forward looking statements. Forward looking statements involve risks and uncertainties and are predictive in nature and actual results could differ materially from those contemplated by the forward looking statements.

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