Canadian Banc Corp. Lowers Class A Monthly Dividend After Share‑Split VWAP Error
A corrected volume‑weighted average price for a recent 1.1‑for‑1 Class A split reduces the per‑share cash payout while leaving the company’s 15% annualized yield method intact.
Overview
- The company issued a correction saying the VWAP used to set the Class A monthly payout was not adjusted for a 1.1‑for‑1 share split and revised the Class A dividend from $0.18588 to $0.16900 per share.
- The lowered per‑share payment reflects an adjusted VWAP of $13.52 and keeps the stated 15.00% annualized yield calculated under the policy announced in November 2021.
- Preferred shareholders’ distribution was not changed and remains a variable rate equal to prime plus 1.50% with a 5.00% floor and an 8.00% cap.
- The company also amended cumulative totals to date, reporting Class A holders have received $25.82 per share and Preferred holders $11.78 per share for a combined $37.60 inclusive of this distribution.
- Canadian Banc Corp. said no other policy or portfolio changes were made; it continues to hold a concentrated six‑bank Canadian portfolio and to use selective covered‑call writing to boost returns, a setup that makes small calculation errors important for near‑term income received by investors.