Communiqués de presse

CanBanc Income Corp. Files Preliminary Prospectus

TORONTO, June 29, 2010 - CanBanc Income Corp. (the "Company") announces that it has filed a preliminary prospectus dated June 28, 2010 with the securities regulatory authorities of all of the Canadian provinces for an initial public offering of shares (the "Shares") at $10 per Share.

The Company was created to invest in a portfolio (the "Portfolio") of common shares of the six largest Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank (each, a "Bank", and collectively, the "Banks"). 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 common shares of each Bank held in the Portfolio, in order to seek to earn tax effective income from dividends and call option premiums, lower the overall volatility of returns associated with owning a portfolio of common shares of the Banks, 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 common shares of the Banks directly.

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 7.0% on the subscription price of $10 per Share).

First Asset is a Canadian wealth management company that manages and administers approximately $1.4 billion in assets.

The syndicate of agents for this offering is being led by CIBC World Markets Inc., 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., Dundee Securities Corporation, GMP Securities L.P., Macquarie Private Wealth Inc. and Mackie Research Capital Corporation.

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.


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