Premium Income to close $34.11M offering on May 14

• Premium Income Corporation (PIC) announced a treasury offering of 2,085,000 preferred shares priced at $16.36 per share.
• Gross proceeds are expected to be approximately $34.11 million upon closing on May 14, 2026.
• The distribution terms remain consistent with previous offerings: fixed cumulative monthly cash distributions of 10.625 cents ($1.275 per annum) per share.
• Yield is calculated at 8.50% based on the original issue price of $15, though new investors receive a yield closer to 7.8% based on the current offering price of $16.36.
• The fund's portfolio strategy focuses primarily on common shares of major Canadian banks (RBC, TD, BMO, CIBC, Scotiabank, National Bank).
• Investment restrictions were recently amended (April 2026) to allow up to 10% of NAV in "Other Securities" including equity and fixed income.
• A previous offering closed on January 29, 2026, raising $42.65 million at a price of $16.20 per share.

• The financing is routine for this fund structure; treasury offerings are standard mechanisms to deploy capital into the underlying portfolio without diluting common equity holders significantly.
• The offering price ($16.36) is slightly higher than the January 2026 closing price ($16.20), suggesting stability or growth in Net Asset Value (NAV).
• However, the yield for new investors has effectively decreased from the original 8.5% to approximately 7.8% due to the higher issue price, which may reduce immediate appeal compared to prior tranches.
• The approval of investment restriction changes in April allows greater flexibility but introduces complexity; while positive for potential alpha generation, it increases exposure risk beyond pure bank equities.
• No material negative surprises or hidden risks were identified in this release regarding the use of proceeds or management capability.

• Premium Income Corporation is a closed-end investment fund managed by Mulvihill Capital Management Inc.
• The flagship strategy involves holding common shares of major Canadian banks and writing covered call and put options to generate additional income above dividend yields.
• The fund structure utilizes Preferred Shares (likely PIC.PR.A based on previous filings) which carry fixed cumulative distributions.
• The investment mandate is heavily concentrated in the financial sector, specifically the "Big Six" Canadian banks.