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C.A. Bancorp Inc. Completes Short-term Investment in Digital


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October 11, 2011 09:16 ET

C.A. Bancorp Inc. Completes Short-term Investment in Digital

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) - C.A. Bancorp Inc. (TSX:BKP) announced today that it has completed an investment in Digital Payment Technologies Corp. ("DPT") (the "Financing").

The proceeds of the Financing are being used by DPT for working capital purposes. Short term promissory notes (the "Notes") were issued to each of C.A. Bancorp (in the principal amount of $650,000) and a co-investor. The Notes are secured and mature in September 2012. In connection with the Financing, C.A. Bancorp extended the maturity date of its original DPT debenture (the "Debenture") from October 2011 to September 2012 to mature concurrently with the Notes and to align with the Company's expected exit timing for this investment. Certain other amendments to the terms of the Debenture were also made.

As part of its publicly-disclosed Realization Strategy, the Company has sought opportunities to monetize its holdings on an accelerated basis, provided that where the Company's interests are better served by realizing on a given asset through an alternative process (or on a different timeline), the Company would proceed in that manner. The Company has considered its opportunities with respect to its investment in DPT and determined that it is in its best interests to complete the Financing and to amend the Debenture.

The Company currently intends to exit its investment in DPT in 2012.

Digital Payment Technologies Corp.

Digital Payment Technologies is an innovative leader in the design, manufacture, and distribution of multi-space parking meters, management software, and online services for the parking industry. DPT is headquartered in Burnaby, British Columbia.

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 has historically focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors. The Company is currently executing its Realization Strategy.

This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct, including but not limited to the fact that there can be no assurance that the Company will be able to realize on its investment in DPT, generally or on any specific terms or timetable. These forward-looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors in the Company's Annual Information Form and Management's Discussion and Analysis and in our other filings with Canadian securities regulators. Additional important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, status of investee companies, 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.

C.A. Bancorp Inc.
401 Bay Street
Suite 1600 Toronto, Ontario M5H 2Y4
Telephone: (416) 214-5985
Fax: (416) 861-8166



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