Canadian Banc Corp. Announces Overnight Offering

TORONTO, ONTARIO -- (Marketwired) -- 04/01/15 -- Canadian Banc Corp. (the "Company') is pleased to announce it has filed a preliminary short form prospectus in each of the provinces of Canada with respect to an offering of Preferred Shares and Class A Shares of the Company. The offering will be co-led by National Bank Financial Inc., CIBC, RBC Capital Markets and will also include Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, GMP Securities L.P., Canaccord Genuity Corp., Dundee Securities, Raymond James, Desjardins Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.

The Preferred Shares will be offered at a price of $10.00 per Preferred Share to yield 5.25% and the Class A Shares will be offered at a price of $13.25 per Class A Share to yield 10%. The closing price on the TSX of each of the Preferred Shares and the Class A Shares on March 31, 2015 was $10.30 and $13.75, respectively.

Since inception of the Company, the aggregate dividends paid on the Preferred Shares have been $5.27 per share and the aggregate dividends paid on the Class A Shares have been $8.89 per share, for a combined total of $14.16 per unit (inclusive of the March 31, 2015 distribution payable on April 10, 2015). All distributions to date have been made in tax advantage eligible Canadian dividends or capital gains dividends.

The net proceeds of the offering will be used by the Company to invest 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.

The Company's investment objectives are to:

Preferred Shares:

i.  provide holders with cumulative preferential floating rate monthly cash
    dividends at a rate per annum equal to the prevailing Canadian prime
    rate plus 0.75% (minimum annual rate of 5.0% and maximum annual rate of
    7%) based on original issue price; and
ii. On or about December 1, 2018 or such other date as the Company may
    determine (the "termination date") to pay holders the original $10 issue
    price of those shares.

Class A Shares:

i.  provide holders with regular monthly cash distributions currently
    targeted to be at the annualized rate of 10% based upon the volume-
    weighted average trading price of the Class A Shares on the TSX for the
    last three trading days of the preceding month; and
ii. On the termination date to pay holders the original $15 issue price of
    those shares.

The sales period of this overnight offering will end at 9:00 a.m. EST on April 2, 2015.

A preliminary short form prospectus containing important information relating to the Preferred Shares and the Class A Shares has been filed with securities commissions or similar authorities in all provinces of Canada. The preliminary short form prospectus is still subject to completion or amendment. Copies of the preliminary short form prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the underwriters listed above. There will not be any sale or any acceptance of an offer to buy the Preferred Shares or the Class A Shares until a receipt for the final short form prospectus has been issued.

Contacts:
Investor Relations
416-304-4443
Toll free at 1-877-4-Quadra (1-877-478-2372)
www.canadianbanc.com

Source: Canadian Banc Corp.

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