Life & Banc preferred share offering successful

• Life & Banc Split Corp. successfully closed a preferred share offering on April 23, 2026.
• Gross proceeds are approximately $76.4 million at an issue price of $10.50 per share.
• The preferred shares carry a fixed cumulative quarterly distribution yielding 6.9% annually.
• Redemption date is set for October 30, 2028, returning the original issue price to holders.
• The offering was priced at a premium ($10.50) relative to the standard $10.00 par value often associated with preferreds in this sector.
• Proceeds will be used to fund investment objectives in Canadian banks and life insurance companies.
• An overallotment option of 15% was granted, indicating strong syndicate confidence or potential for further capital deployment.

• The financing is a routine execution of the ATM program renewed in January 2026; it does not represent a strategic pivot or new asset class acquisition.
• Raising $76.4 million increases the fund's capacity to deploy capital into the portfolio, potentially supporting NAV growth for Class A shareholders if deployed efficiently.
• However, issuing preferred shares at a premium ($10.50) when trading near $12 (Class A) suggests strong demand but also locks in a fixed cost of capital (6.9% yield).
• The primary risk is leverage: Preferred distributions are senior to Class A distributions. An increase in preferred equity increases the fixed payout obligation before Class A shareholders receive income.
• If the underlying portfolio (Banks/Insurers) yields less than 6.9%, the spread compression could pressure Class A distributions or NAV.
• The stock price rallied into the announcement ($10.30 in Jan to $12.11 in April), suggesting the market anticipated this capital raise; the post-close dip to $11.84 indicates some profit-taking rather than a negative reaction to the deal itself.

• Company Structure: Life & Banc Split Corp. operates as a split-capital investment trust structure.
• Flagship Project/Portfolio: The fund invests in an equally weighted basis of six major Canadian banks (BMO, National Bank, CIBC, RBC, Scotiabank, TD) and four major life insurance companies (Great-West Lifeco, iA Financial, Sun Life, Manulife).
• Share Classes:
  • Class A Shares: Target monthly cash distribution ($0.10/share), growth potential in NAV.
  • Preferred Shares: Fixed cumulative quarterly distributions ($0.18125/share), redemption at par on Oct 30, 2028.
• Strategy: Leverage the credit quality of top-tier Canadian financial institutions to generate yield and capital appreciation for Class A holders while providing fixed income for Preferred holders.