Not for distribution to U.S. news wire services or for dissemination in the United States.
Canadian Western Bank (“CWB”) (TSX: CWB) today announced that it has established an at-the-market equity program (the “ATM Program”) that allows CWB to issue up to $150 million worth of common shares from treasury (“Common Shares”) to the public from time to time at the prevailing market price through the Toronto Stock Exchange or any other marketplace on which the Common Shares are listed, quoted or otherwise traded. The volume and timing of distributions under the ATM Program, if any, will be determined at CWB’s sole discretion.
“Our strategic investments in our capabilities, product offering, and brand are creating growth opportunities for CWB. We are seeing signals of a strong economic recovery that could provide opportunities within our risk appetite to grow loans in excess of our current expectations and deliver accretive returns to shareholders. To provide the capital flexibility to take full advantage should these potential opportunities arise, we have established an at-the-market common equity distribution program. This program will provide a flexible tool to grow our regulatory capital base if needed, and only for the amount needed, to support stronger levels of loan growth as it occurs. Using the ATM Program in this manner will drive accretive returns to our shareholders.” stated Chris Fowler, President and CEO.
The ATM Program will be effective until November 9, 2022, unless terminated prior to such date in accordance with its terms. The net proceeds to CWB from the ATM Program, if any, will qualify as Common Equity Tier 1 capital for CWB. Sales of Common Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated May 31, 2021 with National Bank Financial Inc. and BMO Nesbitt Burns Inc., as agents.
CWB has filed a prospectus supplement dated May 31, 2021, to CWB’s base shelf prospectus dated October 9, 2020, with the securities regulatory authorities in each of the provinces and territories of Canada for the ATM Program. You may get these documents and the equity distribution agreement for free by visiting SEDAR at www.sedar.com. Alternatively, any agent participating in the ATM Program will arrange to send you the prospectus supplement, the base shelf prospectus and the equity distribution agreement if you request it by contacting, (i) National Bank Financial Inc., attn: Gavin Brancato, by email at [email protected] or by phone at (416) 869-7568 or BMO Nesbitt Burns Inc., attn: James Ehrensperger, by email at [email protected] or by phone at (416) 359-4351.The Common Shares have not been, and will not be, registered in the United States under the United States Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States (as defined in Regulation S under the Securities Act) absent registration under the Securities Act or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States or in any other jurisdiction where such offer or solicitation would be unlawful.
Caution Regarding Forward-Looking Statements
Certain information contained herein constitutes forward-looking information under applicable securities laws. Forward-looking statements in this news release include, but are not limited to, statements with respect to the aggregate value of Common Shares which may be issued pursuant to the ATM Program, CWB’s expected use of the net proceeds of the ATM Program, if any, and the anticipated benefits of the ATM Program. These statements are based on current expectations and are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of CWB. These risks include, but are not limited to, the price at which Common Shares are sold in the ATM Program, the aggregate net proceeds received by CWB as a result of the ATM Program and other risks described in the “Risk Management” section of CWB’s management’s discussion and analysis contained in CWB’s most recent annual report to shareholders. Except as required by law, CWB does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. The forward-looking information contained in this press release is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes.
FOR FURTHER INFORMATION CONTACT:
Chris Williams
AVP, Investor Relations
CWB Financial Group
Phone: 780-508-8229
Email: [email protected]