Canadian Large Cap Leaders closes overnight offering

Financing Completion and Capital Deployment

• The company successfully closed an overnight offering of preferred shares and Class A shares on April 22, 2026.
• Total gross proceeds generated were $31,606,181.
• Proceeds are designated for investment in a portfolio of large-cap Canadian dividend growth companies (market cap >$10 billion).
• Preferred Shares: Issued at $10.55/share with fixed cumulative quarterly distributions of 7.5% per annum until Feb 28, 2029.
• Class A Shares: Issued at $15.55/share targeting monthly non-cumulative distributions (~13.9% annual yield).

Capital Raise Impact

• The financing is material in absolute dollar value ($31.6M) but routine for a split corporation structure which relies on periodic capital raises to deploy into underlying assets.
• Successful closing validates management's ability to access capital markets, reducing immediate liquidity risk.
• However, the issuance of new equity (Class A and Preferred) introduces dilution concerns regarding Net Asset Value (NAV) per share if asset growth does not outpace share count expansion.

Business Model

• Canadian Large Cap Leaders Split Corp. operates as a split corporation (closed-end fund) structure.
• Flagship Strategy: Invests in an equally weighted portfolio of large-cap Canadian dividend growth companies.
• Income Generation: Utilizes option writing strategies on the underlying portfolio to enhance yield for Class A shareholders.