Premium Income Corporation Announces Closing of Overnight Offering of Preferred Shares

• Premium Income Corporation (PIC) announced the closing of an overnight treasury offering on May 14, 2026.
• The fund issued 2,085,000 preferred shares at a price of $16.36 per share.
• Gross proceeds totaled approximately $34,110,600.
• New shares (TSX: PIC.PR.A) carry a fixed cumulative preferential monthly distribution of $0.10625 ($1.275 per annum).
• The yield is 8.50% calculated on the original issue price of $15.00.
• This follows previous announcements from May 5 and May 6 regarding the intent to close this specific offering.

• Routine Nature: The closing of a preferred share offering is a standard operational activity for closed-end income funds like PIC. It is not unexpected market-moving news but rather the execution of a previously announced plan.
• Capital Deployment: The proceeds will be used to support the fund's investment strategy, primarily holding major Canadian bank equities and writing covered call/put options. This allows the fund to maintain liquidity for distributions and potential portfolio expansion.
• Yield Stability: The 8.50% yield on preferred shares is consistent with previous offerings (January 2026 offering was also at 8.50%), indicating a stable capital cost structure for the fund.
• No Material Surprise: There are no new strategic investors, M&A activity, or changes to the core investment thesis that would alter the fundamental valuation significantly beyond standard financing mechanics.

• Company Name: Premium Income Corporation.
• Fund Manager: Mulvihill Capital Management Inc.
• Investment Strategy: The fund primarily invests in common shares of major Canadian banks (BMO, BNS, CIBC, NBT, RBC, TD). It also employs a strategy of selective writing of covered call and put options on portfolio common shares to generate additional returns above dividend income.
• Portfolio Composition: Up to 10% of Net Asset Value (NAV) may be invested in other securities such as equity, fixed income, and investment funds providing exposure to bank securities.
• Restrictions: The fund is permitted to hold substantially all net assets in common shares of major Canadian banks directly or through underlying investment funds.