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C.A. Bancorp Inc.: C.A. Bancorp Inc. Announces Follow-On Investment in High Fidelity HDTV Inc.

^{Published on 2009-09-14 07:36:51 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2009) - C.A. Bancorp Inc. (TSX:BKP) ("C.A. Bancorp") is pleased to announce that it has completed a $1.5 million follow-on investment and increased its equity interest in High Fidelity HDTV Inc. ("High Fidelity" or the "Company").

C.A. Bancorp invested an additional $1.5 million (by way of convertible debenture) in High Fidelity which was used by High Fidelity to partially repay the previously existing $4.0 million debenture held by C.A. Bancorp. C.A. Bancorp believes that this was an opportune time to increase its equity position in High Fidelity given C.A. Bancorp's current valuation range of High Fidelity and expectations of the Company's long-term growth prospects.

As a result of these transactions, C.A. Bancorp now holds a 13% equity interest in High Fidelity as well as a $2.5 million debenture paying a 10% annual coupon (5% cash, 5% paid-in-kind) maturing in July 2010 and a $1.5 million convertible debenture which is convertible into an additional 6% of High Fidelity's equity and which pays a 7% annual cash coupon.

High Fidelity HDTV Inc.

High Fidelity is Canada's leading all-HD broadcast and production company. It broadcasts four channels, Oasis HD, Equator HD, Treasure HD and Rush HD. High Fidelity has formed HD programming and production alliances with several leading HD broadcasters worldwide. For more information, visit [ http://www.hifihdtv.ca ].

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

This news release contains forward-looking statements. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp's beliefs regarding future events. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will," "expect," "intend," "plan," "estimate," "anticipate," "believe" or "continue," similar words or the negative thereof, or variations of such words and phrases that certain actions, events or anticipated outcomes "may," "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The future business, operations and performance of C.A. Bancorp discussed herein could differ materially from those expressed or implied by such statements. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Additional important factors that could cause actual results to differ materially from expectations include, among other things, the ability of the Company to make additional private investments, and general economic and market factors, competition, interest rates, tax related matters, loss of personnel, reliance on key personnel, ability of the Company to generate positive future returns for investors, Company's success in preserving capital, managing debt, maintaining liquidity and managing operating costs. The Company cautions that risk factors discussed in applicable continuous disclosure filings required by law that the Company has made and filed on SEDAR including its MD&A and annual information form, should also be considered carefully and that undue reliance not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. The cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release.

C.A. Bancorp Inc.
The Exchange Tower
130 King Street West
Suite 2810, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166