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Can-Financials Income Corp.: Closes Initial Public Offering

TORONTO, February 18, 2011 - Can-Financials Income Corp. (the "Company") announces the closing of its initial public offering. Pursuant to the offering, the Company issued an aggregate of 9 million shares (the "Shares") at $10 per Share, for gross proceeds of $90 million. The Shares are listed on the Toronto Stock Exchange under the symbol FIC. The Company has granted the agents for the offering an over-allotment option to acquire up to 1.35 million additional shares at a price of $10 per share exercisable at any time during the next thirty days.

The Company will invest on an equal weight basis in a portfolio (the "Portfolio") of the securities of the issuers comprising the S&P/TSX Capped Financials Sector Index (the "S&P/TSX Financials Index"), from time to time (the "Portfolio Issuers"). The S&P/TSX Financials Index is comprised of securities of Canadian financial sector issuers listed on the TSX, as selected by Standard & Poor's using their guidelines for evaluating capitalization and liquidity. The Portfolio will initially be approximately equal weighted, and each month First Asset Investment Management Inc. (the "Manager" or "First Asset") will employ a covered call option writing program on approximately, and not more than, 25% of the securities of each Portfolio Issuer, in order to seek to earn attractive tax effective income from dividends, distributions and call option premiums, lower the overall volatility of returns associated with owning a portfolio of these securities, and to generate capital appreciation for holders of Shares of the Company (the "Shareholders").

The objectives of the Company are to provide Shareholders with:

  1. quarterly distributions;
  2. the opportunity for capital appreciation; and
  3. lower overall volatility of Portfolio returns than would be experienced by owning a portfolio of the securities of the issuers that comprise the S&P/TSX Financials Index.

The Company will not have a fixed distribution, but intends to set periodic distribution targets. Based on the Manager's current estimates, the initial distribution target for the Company is expected to be $0.175 per quarter ($0.70 per annum to yield 7% on the subscription price of $10 per Share).

The syndicate of agents for this offering is being led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and includes BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Raymond James Ltd., Wellington West Capital Markets Inc., Mackie Research Capital Corporation and Macquarie Private Wealth Inc.

For further information, please call Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.

"S&P/TSX Composite Index" and "S&P/TSX Capped Financials Sector Index" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by the Company. The Company is not sponsored, endorsed, sold or promoted by Standard & Poor's ("S&P") or its third party licensors.