Canadian Banc Corp.: Further 13.26% Increase to Monthly Dividend for Class A Share

TORONTO, ONTARIO--(Marketwired - Oct. 16, 2013) - On September 17, 2013, Canadian Banc Corp. ("the Company") announced a change in the distribution policy to the Class A shares that resulted in an immediate increase of over 42% to the monthly dividend. The Company is pleased to announce a further 13.26% increase to the monthly distribution under the new distribution policy due to the increased market price of the Company's Class A share. The dividend for October will be $0.08608 per share.

Under the new distribution policy, the monthly dividend payable on the Class A shares will be determined by applying a 10% annualized rate on the volume weighted average market price of the Class A shares over the last 3 trading days of the preceding month. As a result, Class A shareholders of record on October 31, 2013 will receive a dividend of $0.08608 per share based on the average volume weighted trading market price of $10.33 over the last 3 trading days in September, payable on November 8, 2013. Effectively, the actual amount of monthly distributions paid will vary with the market price, but the current yield will remain stable at 10% under this new distribution policy.

There will be no changes to the Preferred Share dividend policy or the Class A dividend threshold policy. Preferred shares will continue to receive prime plus 0.75% with a minimum rate of 5%.

Since inception Class A shareholders have received a total of $7.03 per share and Preferred shareholders have received a total of $4.56 per share inclusive of this distribution, for a combined total of $11.59 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.