Canadian Banc Corp. (BK) 2024年年度報告「TSX」.pdf

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1、 Canadian BanC Corp.2024 annual report This report may contain forward-looking statements about the Company.Forward-looking statements include statements that are predictive in nature,that depend upon or refer to future events or conditions,or that include words such as“expects”,“anticipates”,“inten

2、ds”,“plans”,“believes”,“estimates”or negative versions thereof and similar expressions.In addition,any statement that may be made concerning future performance,strategies or prospects,and possible future Company action,is also forward-looking.Forward-looking statements are based on current expectati

3、ons and projections about future events and are inherently subject to,among other things,risks,uncertainties and assumptions about the Company and economic factors.Forward-looking statements are not guarantees of future performance,and actual events and results could differ materially from those exp

4、ressed or implied in any forward-looking statements made by the Company.Any number of important factors could contribute to any divergence between what is anticipated and what actually occurs,including,but not limited to,general economic,political and market factors,interest and foreign exchange rat

5、es,global equity and capital markets,business competition,technology change,changes in government regulations,unexpected judicial or regulatory proceedings,and catastrophic events.The above-mentioned list of important factors is not exhaustive.You should consider these and other factors carefully be

6、fore making any investment decisions and you should avoid placing undue reliance on forward-looking statements.While the Company currently anticipates that subsequent events and developments may cause the Companys views to change,the Company does not undertake to update any forward-looking statement

7、s.3Canadian BanC Corp.annual ManageMent report of fund perforManCenoveMBer 30,2024This is the annual Management Report of Fund Performance(MRFP)for the year ended November 30,2024.This MRFP contains financial highlights but does not contain the complete financial statements of the Company.The annual

8、 financial statements and accompanying notes are attached to this report.Investors may also obtain a copy of the Companys proxy voting policies and procedures,proxy voting disclosure record,or quarterly portfolio disclosure by visiting our website at or by writing to the Company at Investor Relation

9、s,200 Front Street West,Suite 2510,Toronto,Ontario M5V 3K2.These reports are available to view and download at or .investMent oBjeCtives and strategiesCanadian Banc Corp.invests primarily in a portfolio of common shares which will include each of the following Canadian chartered banks:Bank of Montre

10、al National Bank of CanadaBank of Nova Scotia Royal Bank of CanadaCanadian Imperial Bank of Commerce Toronto-Dominion Bank The Company may also invest up to 20%of the net asset value in equity securities of Canadian or foreign financial services corporations other than the core holdings listed above

11、.In order to supplement the dividends received on the portfolio and to reduce risk,the Company will from time to time write covered call options in respect of some or all of the common shares in the portfolio.The Company offers two types of shares:Preferred sharesThe investment objectives with respe

12、ct to the Preferred shares are as follows:1.Preferred shareholders are entitled to receive a cumulative preferential floating rate monthly dividend at an annual rate equivalent to the prevailing Canadian prime rate plus 1.5%,with a minimum annual rate of 5%and a maximum annual rate of 8%based on the

13、$10 repayment value;and 2.On the termination date of December 1,2028(subject to further 5 year extensions thereafter),to pay holders the$10 repayment value of those shares.4Class A sharesThe investment objectives with respect to the Class A shares are as follows:1.To provide holders of Class A share

14、s with monthly cash distributions targeted to be at a rate of 15%annualized based on the volume weighted average market price of the Class A shares for the last 3 trading days of the preceding month and to pay the original issue price of those shares on the termination of the Company.The net asset v

15、alue per unit must remain above the required$15 per unit threshold for monthly distributions to be declared;and2.On the termination date,to pay holders the original issue price($15)of those shares.riskThe risks of investing in the Company remain as discussed in the Annual Information Form dated Febr

16、uary 24,2025.In addition,note 5 of the financial statements(“Management of Risk of Financial Instruments”)contains disclosure on specific types of risks related to the financial investments held by the Company.results of operationsNorth American equity markets experienced robust gains over the year

17、ended November 30,2024,driven by a confluence of factors including moderating inflation,a shift in monetary policy by central banks,and a significant post-U.S.election rally.In Canada,initial gains were supported in part by higher commodity prices and easing inflation.This decline in inflation foste

18、red expectations of imminent interest rate cuts,initially boosting market sentiment.However,the Bank of Canada maintained its policy rate unchanged through the first half of 2024,awaiting further confirmation of sustained lower inflation.During this time,the Canadian economy showed signs of moderati

19、on,with rising unemployment and slowing wage growth.Starting in June 2024,the Bank of Canada began cutting its policy interest rate,reducing it four times from 5.00%to 3.75%by November 2024.This shift in monetary policy was designed to stimulate economic activity as Canadas economy showed signs of t

20、rending towards a recession in the latter half of the year,with weak consumer and business sentiment,a sluggish labour market,a cooling housing market,and slower GDP growth.The rate cuts helped support Canadian equity markets by lowering borrowing costs for both businesses and consumers,signaling th

21、e central banks responsiveness to slowing economic conditions.However,despite these rate reductions,key economic indicators continued to reflect a moderating economy.In the U.S.,equity markets also benefited from moderating inflation and anticipation of a shift in monetary policy.The U.S.economy,whi

22、le showing resilience,also began to exhibit signs of slowing growth in the first half of 2024.Although the labour market remained relatively strong,with low unemployment,concerns about a potential recession began to emerge as business investment softened.The U.S.Federal Reserve held rates steady in

23、the first half of 2024,signaling its commitment to achieving its 2%target.As inflation continued to ease and the economic data pointed towards a potential slowdown,the U.S.Federal Reserve signaled a policy shift,beginning rate cuts in September 2024 and lowering rates by 0.75%cumulatively by the end

24、 of November 2024 to support economic activity and boost market confidence.In November 2024,U.S.equity markets rallied to record highs following the U.S.election results.This surge was attributed to both the swift confirmation of the election outcome and the markets positive reaction to the incoming

25、 administrations proposed economic agenda,which emphasized pro-growth measures,tax cuts,a more market-driven economy,and reduced federal government spending.This positive sentiment in the U.S.had a positive spillover effect on Canadian equities,further contributing to their gains.Against this backdr

26、op,the companies held in the portfolio generally appreciated significantly over the year.The net assets per unit of the Company was$22.39 as at November 30,2024.5A combined total of$2.42 was paid in distributions during the year to Class A shares and Preferred shares,bringing total distributions pai

27、d since inception to$33.77 per unit.Pursuant to the special retraction right in connection with the extension of the Companys term for a further five year period to December 1,2028,the Company redeemed 8,523,887 Preferred shares and 51,483 Class A shares and made retraction payments of$85,238,870 an

28、d$450,476,respectively,to each class of shares on December 15,2023.The Company announced on May 27,2024 that the TSX accepted its notice of intention to make a Normal Course Issuer Bid(the“NCIB”)to purchase its Preferred shares and Class A shares through the facilities of the TSX and/or alternative

29、Canadian trading systems.During the year ended November 30,2024,there were no Preferred shares or Class A shares purchased for cancellation.During the year ended November 30,2024,6,213,300 Preferred shares were sold through an at-the-market equity program(“ATM Program”)at an average selling price of

30、$10.11 per Preferred share.Gross proceeds,net proceeds and commissions on the Preferred share sales were$62,834,395,$61,785,368 and$1,049,027,respectively.During the year ended November 30,2024,7,296,200 Class A shares were sold through the ATM Program at an average selling price of$10.96 per Class

31、A share.Gross proceeds,net proceeds and commissions on the Preferred share sales were$79,933,632,$78,708,937 and$1,224,695,respectively.As at November 30,2024,net assets of the Company were$766.8 million.The covered call writing program continued to provide additional income and supplemented the div

32、idend income earned in the portfolio.reCent developMentsIn February 2025,the U.S.announced trade tariffs on certain Canadian exports,prompting retaliatory tariffs from Canada on specific U.S.goods.Although these trade tariffs have been temporarily suspended,the Companys investment portfolio may expe

33、rience volatility as trade negotiations progress.Pursuant to the special retraction right in connection with the extension of the Companys term for a further five year period from December 1,2023 to December 1,2028,the Company redeemed 8,523,887 Preferred shares and 51,483 Class A shares and made re

34、traction payments of$85,238,870 and$450,476,respectively,to each class of shares on December 15,2023.related party transaCtionsQuadravest Capital Management Inc.(“Quadravest”)as investment manager and Manager earns fees from the Company as described below in the Management Fees section.6Class A shar

35、es Distributions Class A shareholders receive monthly cash distributions targeted to be at a rate of 15%annualized based on the volume weighted average market price of the Class A shares for the last 3 trading days of the preceding month.The net asset value per unit must remain above the required$15

36、 per unit threshold for monthly distributions to be paid.Total monthly cash distributions per Class A share during the year amounted to$1.6256.Preferred shares DistributionsPreferred shareholders are entitled to receive a cumulative preferential floating rate monthly dividend at an annual rate equiv

37、alent to the prevailing Canadian prime rate plus 1.5%,with a minimum annual rate of 5%and a maximum annual rate of 8%based on the$10 repayment value.Total distributions during the year amounted to$0.7946 per Preferred share.$14$12$10$8$6$4$20Nov-05Nov-06Nov-07Nov-08Nov-09Nov-10Nov-11Nov-12Nov-13Nov-

38、14Nov-15Nov-16Nov-17Nov-18Nov-19Nov-20Nov-21Nov-22Nov-23Nov-24$0.20$0.84$1.53$2.11$2.61$3.11$3.61$4.11$4.61$5.11$5.61$6.11$6.61$7.11$7.66$8.16$8.66$9.24$10.04$10.83Preferred Share Distributions Since Inception10.83 Cumulative total of distributions paid to Preferred sharesince inception$28$26$24$22$

39、20$18$16$14$12$10$8$6$4$20Nov-05Nov-06Nov-07Nov-08Nov-09Nov-10Nov-11Nov-12Nov-13Nov-14Nov-15Nov-16Nov-17Nov-18Nov-19Nov-20Nov-21Nov-22Nov-23Nov-24$0.33$1.48$2.69$3.74$4.24$4.99$5.74$6.39$7.13$8.43$9.67$10.68$13.06$14.36$15.42$16.12$17.29$19.39$21.32$22.94Class A Share Distributions Since Inception22

40、.94Cumulative total of distributions paid to Class A share sinceinception1.12Special distributions paid since inception 7finanCial HigHligHtsThe following tables show selected financial information about the Company and are intended to help you understand the Companys financial performance for the p

41、ast five years.This information is derived from the Companys audited annual financial statements.The information in the following table is presented in accordance with National Instrument(“NI”)81-106 and,as a result,does not act as a continuity of opening and closing net assets per unit.The Companys

42、 net assets per unit Years ended November 30 2024 2023 2022 2021 2020Net assets per unit,beginning of year(1)18.75 21.37 23.11 19.01 21.36Increase(decrease)from operations Total revenue 0.83 0.84 0.79 0.81 0.84 Total expenses (0.23)(0.23)(0.28)(0.33)(0.24)Realized gains for the year 0.50 0.03 0.16 0

43、.28(0.32)Unrealized gains(losses)for the year 4.92(1.24)(0.43)5.05(1.52)Total increase(decrease)from operations(2)6.02(0.60)0.24 5.81(1.24)Distributions(3)Canadian dividends (2.42)(2.69)(2.53)(1.40)(1.21)Capital gains dividends -(0.03)(0.15)(0.27)-Total distributions (2.42)(2.72)(2.68)(1.67)(1.21)Ne

44、t assets per unit at end of year 22.39 18.75 21.37 23.11 19.01 Net assets per Preferred share 10.00 10.00 10.00 10.00 10.00Net assets per Class A share 12.39 8.75 11.37 13.11 9.01 Net assets per unit at end of year 22.39 18.75 21.37 23.11 19.01(1)Net assets per unit is the difference between the agg

45、regate amount of the Companys assets and the aggregate amount of its liabilities,excluding Preferred shares and net assets attributable to holders of redeemable Class A shares,at the valuation date,divided by the number of units then outstanding.(2)Total increase(decrease)from operations is before t

46、he payment of Preferred and Class A share distributions and other income(charges)related to Preferred shares and is calculated based on the weighted average number of units outstanding during the year.(3)Distributions are to Preferred shares and Class A shares are based on the number of Preferred sh

47、ares and Class A shares outstanding on the record date for each distribution in the year and were paid in cash.Characterization of distributions is based on the tax treatment that is received by investors.8ratios and suppleMental data Years ended November 30 2024 2023 2022 2021 2020 Net asset value(

48、millions)(1)$766.8$601.7$345.4$235.9$203.1Number of units outstanding(2)34,251,209 32,088,590 16,168,419 10,207,582 10,679,482Base Management expense ratio(3)1.04%1.07%1.16%1.39%1.28%Management expense ratio including one time secondary offering expenses(4)1.42%3.30%2.60%1.45%1.28%Management expense

49、 ratio per Class A share(5)10.55%15.59%9.61%6.74%9.42%Portfolio turnover rate(6)16.47%1.99%6.11%9.11%14.5%Trading expense ratio(7)0.02%0.03%0.04%0.05%0.06%Closing market price(TSX):Preferred shares$10.42$9.84$10.06$10.70$10.31Closing market price(TSX):Class A shares$12.00$9.78$13.40$13.20$8.67(1)Thi

50、s information is provided as at November 30.(2)At times when there is an unequal number of Class A and Preferred shares outstanding,a notional unit amount will be determined as the quotient of the total net asset value of the Company and the sum of the net asset value per share attributable to Class

51、 A shares and Preferred shares.(3)A separate base management expense ratio per unit has been presented to reflect the ongoing operating expenses of the Company.The base management expense ratio per unit is based on total expenses for the stated year,excluding commissions and other portfolio transact

52、ion costs,withholding tax,distributions on Preferred shares and any one time offering expenses and is expressed as an annualized percentage of the average net asset value of the Company during the year.(4)Share issue expenses including all agents fees and other offering expenses are one time initial

53、 expenses connected with the launch of the Company or any subsequent secondary offering.Any expenses incurred with secondary offerings were offset by the accretion to net asset value per unit of such offerings.(5)Management expense ratio per Class A share is based on the requirements of NI 81-106.Th

54、is instrument requires that all split share companies produce an expense ratio which allocates all ongoing operating expenses of the Company(excluding commissions and other portfolio transaction costs and withholding tax),all distributions on Preferred shares and all issuance costs to the Class A sh

55、ares and expresses this as an annualized percentage of the average net asset value attributable to the Class A shares during the year.The management expense ratio per Class A share should not be interpreted as the required return necessary for the Company or the Class A shares to cover the operating

56、 expenses of the Company.This calculation is based only on a portion of the Companys assets whereas the Company utilizes its entire assets to generate investment returns.Management believes that the base management expense ratio per unit disclosed in the table above is the most representative ratio

57、in assessing the ongoing efficiency of the administration of the Company,making comparisons to the expense ratios of single unit mutual funds or determining the minimum investment returns necessary by the Company to achieve growth in net asset value per unit.(6)The Companys portfolio turnover rate i

58、ndicates how actively Quadravest manages the portfolio investments.A portfolio turnover rate of 100%is equivalent to the Company buying and selling all of the securities in its portfolio once in the course of the year.The Company employs a covered call writing strategy which can cause the portfolio

59、turnover rate to be higher than conventional mutual funds.The higher the Companys portfolio turnover rate in a year,the greater the trading costs payable by the Company in the year and the greater chance of an investor receiving taxable capital gains in the year.There is not necessarily a relationsh

60、ip between a high turnover rate and the performance of the Company.(7)The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of the average net asset value of the Company during the year.9ManageMent feesPursuant to the terms

61、 of the investment management agreement,Quadravest is entitled to a base management fee payable in arrears at an annual rate equal to 0.65%of the net asset value of the Company,which includes the outstanding Preferred shares,calculated as at each month end valuation date.In addition,Quadravest is en

62、titled to receive a performance fee subject to the achievement of certain pre-established total return thresholds.Pursuant to the management agreement,Quadravest is entitled to an administration fee payable monthly in arrears at an annual rate equal to 0.20%of the net asset value of the Company,whic

63、h includes the outstanding Preferred shares,calculated as at each month-end valuation date.The base management fee was used by Quadravest to provide investment analysis,make investment decisions,and make brokerage arrangements for the purchase and sale of securities including the covered call writin

64、g program.The administration fee was used to provide or arrange administrative services required by the Company which includes all operational services,financial accounting,shareholder reporting and regulatory reporting.10past perforManCeYear-by-Year ReturnsThe past performance of 1)the net asset va

65、lue per unit;2)the Preferred share on a net asset value basis;and 3)the Class A share on a net asset value basis for each of the last 10 years are presented in the bar charts below.Each bar in the chart reflects the change in percentage terms of how a unit,a Preferred share or a Class A share would

66、have increased or decreased during the applicable year.In respect to the charts displayed below,please note the following:a)The performance information shown assumes that all cash distributions made by the Company during the years shown were reinvested in the applicable additional securities of the

67、Company;b)The performance information does not take into account sales,redemption,distribution or other optional charges that would have reduced returns or performance;andc)Past performance of the Company does not necessarily indicate how it will perform in the future.50%40%30%20%10%0-10%-20%-30%Nov

68、-15Nov-16Nov-17Nov-18Nov-19Nov-20Nov-21Nov-22Nov-23Nov-24-5.96%17.19%15.90%-2.17%9.78%-4.81%31.03%4.34%0.63%34.31%Net Asset Value Per Unit80%60%40%20%0-20%-40%Nov-15Nov-16Nov-17Nov-18Nov-19Nov-20Nov-21Nov-22Nov-23Nov-24-13.85%28.68%25.01%-7.87%13.80%-13.41%60.10%3.18%-6.35%65.23%Class A Share10%9%8%

69、7%6%5%4%3%2%1%0Nov-15Nov-16Nov-17Nov-18Nov-19Nov-20Nov-21Nov-22Nov-23Nov-245.12%5.12%5.12%5.12%5.59%5.23%5.12%5.90%8.29%8.24%Preferred Share11annual CoMpound perforManCeThe following table shows the Companys annual compound return for the one,three,five and ten years ended November 30,2024 and since

70、 inception:One Three Five Ten Since year years years years inceptionCanadian Banc Corp.-Unit 34.31%12.14%11.96%9.21%8.50%Canadian Banc Corp.-Preferred share 8.24%7.47%6.55%5.88%5.73%Canadian Banc Corp.-Class A share 65.23%16.88%17.22%12.39%11.07%Market indiCes(1)S&P TSX Financial Index 42.58%13.20%1

71、3.06%10.82%9.93%(1)As a result of the Company being limited to a specific universe of stocks and that a covered call writing program is implemented to generate additional income,the investment profile of the Company is quite unique and any comparisons with any other market indices may not be appropr

72、iate.suMMary of investMent portfolioAll holdings as at November 30,2024 Name Weighting(%)Royal Bank of Canada 16.8National Bank of Canada 12.4Toronto-Dominion Bank 12.4Canadian Imperial Bank of Commerce 12.0Bank of Nova Scotia 10.1Bank of Montreal 7.2J.P.Morgan Chase&Co.5.2Bank of America 4.3Goldman

73、 Sachs Group Inc.4.2Citigroup Inc.3.0Morgan Stanley 1.9Total long positions as a percentage of net assets 89.5Cash 11.4Other net assets(liabilities)-0.9 100.0 The summary of investment portfolio may change due to ongoing portfolio transactions of the Company.Updates are available quarterly.12Canadia

74、n BanC Corp.ManageMents responsiBility for finanCial reportingThe financial statements of Canadian Banc Corp.(the“Company”)have been prepared by Quadravest Capital Management Inc.(the“Manager”of the Company)and approved by the Board of Directors of the Company.The Manager is responsible for the info

75、rmation and representations contained in these financial statements and the other sections of the annual report.The Manager maintains appropriate procedures to ensure that relevant and reliable financial information is produced.The financial statements have been prepared in accordance with Internati

76、onal Financial Reporting Standards as issued by the International Accounting Standards Board(“IFRS Accounting Standards”).The material accounting policy information applicable to the Company is described in note 3 to the financial statements.The Board of Directors of the Company is responsible for e

77、nsuring that management fulfills its responsibilities for financial reporting and has reviewed and approved these financial statements.The Manager with the approval of the Board of Directors of the Company has appointed PricewaterhouseCoopers LLP as the external auditor of the Company.They have audi

78、ted the financial statements of the Company in accordance with Canadian generally accepted auditing standards to enable them to express to shareholders their opinion on the financial statements.The auditor has full and unrestricted access to the Audit Committee to discuss its findings.Wayne finCHChi

79、ef Executive Officer,President and Director Quadravest Capital Management Inc.silvia goMesChief Financial Officer Quadravest Capital Management Inc.13 PricewaterhouseCoopers LLP PwC Tower,18 York Street,Suite 2500,Toronto,Ontario,Canada M5J 0B2 T.:+1 416 863 1133,F.:+1 416 365 8215,Fax to mail:ca_to

80、ronto_18_york_ “PwC”refers to PricewaterhouseCoopers LLP,an Ontario limited liability partnership.Independent auditors report To the Shareholders of Canadian Banc Corp.(the Company)Our opinion In our opinion,the accompanying financial statements present fairly,in all material respects,the financial

81、position of the Company as at November 30,2024 and 2023,and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board(IFRS Accounting Standards).What we have audited T

82、he Companys financial statements comprise:the statements of financial position as at November 30,2024 and 2023;the statements of comprehensive income/(loss)for the years then ended;the statements of changes in net assets attributable to holders of redeemable Class A shares for the years then ended;t

83、he statements of cash flow for the years then ended;and the notes to the financial statements,comprising material accounting policy information and other explanatory information._Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards.Our responsibi

84、lities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Independence We are independent of

85、the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada.We have fulfilled our other ethical responsibilities in accordance with these requirements.14_Other information Management is responsible for the other information.The other i

86、nformation comprises the Annual Management Report of Fund Performance and the information,other than the financial statements and our auditors report thereon,included in the annual report.Our opinion on the financial statements does not cover the other information and we do not express any form of a

87、ssurance conclusion thereon.In connection with our audit of the financial statements,our responsibility is to read the other information identified above and,in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the a

88、udit,or otherwise appears to be materially misstated.If,based on the work we have performed,we conclude that there is a material misstatement of this other information,we are required to report that fact.We have nothing to report in this regard.Responsibilities of management and those charged with g

89、overnance for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards,and for such internal control as management determines is necessary to enable the preparation of financial statements th

90、at are free from material misstatement,whether due to fraud or error.In preparing the financial statements,management is responsible for assessing the Companys ability to continue as a going concern,disclosing,as applicable,matters related to going concern and using the going concern basis of accoun

91、ting unless management either intends to liquidate the Company or to cease operations,or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Companys financial reporting process.Auditors responsibilities for the audit of the financial statements

92、 Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due to fraud or error,and to issue an auditors report that includes our opinion.Reasonable assurance is a high level of assurance,but is not a guarantee th

93、at an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate,they could reasonably be expected to influence

94、 the economic decisions of users taken on the basis of these financial statements.15As part of an audit in accordance with Canadian generally accepted auditing standards,we exercise professional judgment and maintain professional skepticism throughout the audit.We also:Identify and assess the risks

95、of material misstatement of the financial statements,whether due to fraud or error,design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting

96、 from fraud is higher than for one resulting from error,as fraud may involve collusion,forgery,intentional omissions,misrepresentations,or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in th

97、e circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.Conclude on the appropriateness of

98、 managements use of the going concern basis of accounting and,based on the audit evidence obtained,whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern.If we conclude that a material uncertainty e

99、xists,we are required to draw attention in our auditors report to the related disclosures in the financial statements or,if such disclosures are inadequate,to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditors report.However,future events or co

100、nditions may cause the Company to cease to continue as a going concern.Evaluate the overall presentation,structure and content of the financial statements,including the disclosures,and whether the financial statements represent the underlying transactions and events in a manner that achieves fair pr

101、esentation.We communicate with those charged with governance regarding,among other matters,the planned scope and timing of the audit and significant audit findings,including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governan

102、ce with a statement that we have complied with relevant ethical requirements regarding independence,and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,and where applicable,related safeguards.The engagement partner on the audit

103、resulting in this independent auditors report is Christina Fox.DRAFT Chartered Professional Accountants,Licensed Public Accountants Toronto,Ontario February 20,2025 16The accompanying notes are an integral part of these financial statements.Canadian BanC Corp.stateMents of finanCial positionas at no

104、veMBer 30,2024 and noveMBer 30,2023 November 30,November 30,2024 2023 ($)($)ASSETSCurrent Assets Investments 687,644,373 432,093,317Cash 87,417,362 195,880,944Interest,dividends and other receivables 47,203 238,078Receivable in respect of investments sold -2,070,472 775,108,938 630,282,811 LIABILITI

105、ESCurrent LiabilitiesWritten options 545,620 603,455Fees and other accounts payable 651,870 626,940Payable in respect of investments purchased -21,713,058Distributions payable 7,077,262 5,678,296Preferred shares(notes 1 and 6)341,455,950 364,561,820Class B shares 1,000 1,000 349,731,702 393,184,569N

106、ET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE CLASS A SHARES(note 1)425,377,236 237,098,242 Preferred shares outstanding(notes 1 and 6)34,145,595 36,456,182Class A shares outstanding(notes 1 and 6)34,336,499 27,091,782 Net assets per Preferred share$10.00$10.00Net assets per Class A share$12.39$8.

107、75Net assets per unit$22.39$18.75Approved on behalf of the Board of Directors Wayne finCHDirectorpeter CruiCksHankDirector17The accompanying notes are an integral part of these financial statements.Canadian BanC Corp.stateMents of CoMpreHensive inCoMe/(loss)for tHe years ended noveMBer 30 2024 2023

108、($)($)INCOMENet gain(loss)on investments and derivatives Net realized gain(loss)15,326,164 702,350Net change in unrealized appreciation/depreciation 151,197,452(28,441,637)Dividends 21,848,443 15,106,167Interest for distribution purposes 3,747,111 4,050,603Net gain(loss)on investments and derivative

109、s 192,119,170(8,582,517)Other gain(loss)Realized gain(loss)on currency 104,252 10,189Change in unrealized gain(loss)in the value of currency 117,924 14,398 192,341,346(8,557,930)EXPENSES(note 7)Management fees 5,500,367 3,910,833 Audit fees 28,809 28,763Directors fees 14,312 14,334 Independent Revie

110、w Committee fees 4,064 4,064 Custodial fees 71,544 92,704 Legal fees 30,743 34,286Shareholder reporting costs 56,814 42,055Other operating expenses 235,461 172,997Harmonized sales tax 632,539 514,416Transaction Costs 153,921 143,658Witholding taxes 395,461 372,682 7,124,035 5,330,792 Increase(decrea

111、se)in net assets attributable to holders of redeemable Class A shares before distributions and other income(charges)related to Preferred shares 185,217,311(13,888,722)Distributions on Preferred shares(24,804,645)(19,170,171)Premium(discount)on issuance of Preferred shares 701,395(1,411,365)Issuance

112、costs on Preferred shares(1,091,854)(5,942,443)Increase(decrease)in net assets attributable to holders of redeemable Class A shares 160,022,207(40,412,701)Increase(decrease)in net assets attributable to holders per redeemable Class A share(note 8)5.25(1.81)18The accompanying notes are an integral pa

113、rt of these financial statements.Canadian BanC Corp.stateMents of CHanges in net assets attriButaBle to Holders of redeeMaBle Class a sHaresfor tHe years ended noveMBer 30 2024 2023 ($)($)Net Assets attributable to holders of redeemable Class A shares-Beginning of year 237,098,242 184,349,820 Increa

114、se(decrease)in net assets attributable to holders of redeemable Class A shares 160,022,207(40,412,701)Gross proceeds on issuance of Class A shares(note 6)79,933,632 140,495,151Agents fees and issuance costs on issuance of Class A shares(1,267,505)(4,139,475)Net proceeds on issuance of Class A shares

115、 78,666,127 136,355,676Class A share redemptions(450,476)-Distributions on Class A shares(1)Canadian dividends(49,958,864)(42,565,253)Capital gains dividends-(629,300)(49,958,864)(43,194,553)Change in net assets attributable to holders of redeemable Class A shares 188,278,994 52,748,422 Net Assets a

116、ttributable to holders of redeemable Class A shares-End of year 425,377,236 237,098,242(1)Characterization of distributions is based on the tax treatment that is received by shareholders.19The accompanying notes are an integral part of these financial statements.Canadian BanC Corp.stateMents of CasH

117、 floWfor tHe years ended noveMBer 30 2024 2023 ($)($)Cash flows from(used in)operating activitiesIncrease(decrease)in net assets attributable to holders of redeemable Class A shares 160,022,207(40,412,701)Adjustment for:Distributions on Preferred shares 24,804,645 19,170,171Unrealized(gain)loss in t

118、he value of currency(117,924)(14,398)(Premium)discount on issuance of Preferred shares(701,395)1,411,365Issuance costs on Preferred shares 1,091,854 5,942,443Net realized(gain)loss on investments and derivatives(15,326,164)(702,350)Net change in unrealized appreciation/depreciation of investments an

119、d derivatives(151,197,452)28,441,637 Purchase of investments,net of option premiums(190,518,514)(153,474,291)Proceeds from sale of investments 81,790,653 2,815,793(Increase)decrease in interest,dividends and other receivables 190,875(157,988)Increase(decrease)in fees and other accounts payable 161,4

120、30 177,188Cash flows from(used in)operating activities(89,799,785)(136,803,131)Cash flows from(used in)financing activitiesGross proceeds on issuance of Class A shares and Preferred shares(note 6)142,768,027 342,552,786Agents fees and issue costs on issuance of Class A shares and Preferred shares(2,

121、495,859)(9,945,418)Amounts paid on redemption of redeemable Class A shares and Preferred shares(85,689,346)-Distributions paid on Class A shares (48,249,123)(42,588,815)Distributions paid on Preferred shares(25,115,420)(17,739,702)Cash flows from(used in)financing activities(18,781,721)272,278,851Un

122、realized gain(loss)in the value of currency 117,924 14,398Net increase(decrease)in cash(108,463,582)135,490,118Cash at beginning of the year 195,880,944 60,390,826Cash at end of the year 87,417,362 195,880,944Dividends received,net of withholding taxes*21,682,508 14,578,011Interest received*3,747,11

123、1 4,050,603 *Included as part of Cash Flows from Operating Activities.20Canadian BanC Corp.sCHedule of portfolio investMents as at noveMBer 30,2024 No.of shares Description Average Cost($)Fair (contracts)(Premiums received)Value ($)6 Core Holdings Canadian Common Equities 415,100 Bank of Montreal 43

124、,646,931 55,415,850 973,600 Bank of Nova Scotia 65,421,752 77,741,960 1,013,300 Canadian Imperial Bank of Commerce 66,104,776 92,088,704 687,200 National Bank of Canada 54,471,980 95,321,512 733,467 Royal Bank of Canada 86,027,968 129,207,547 1,201,200 Toronto-Dominion Bank 90,075,712 95,171,076 Tot

125、al Canadian Common Equities in Core Holdings(79.3%)405,749,119 544,946,649 Other U.S.Common Equities 493,390 Bank of America 21,291,563 32,820,821 234,100 Citigroup Inc.16,634,856 23,229,396 37,605 Goldman Sachs Group Inc.19,869,521 32,042,781 114,800 J.P.Morgan Chase&Co.20,300,357 40,139,253 78,500

126、 Morgan Stanley 6,563,308 14,465,473 Total Other U.S.Common Equities in Core Holdings(20.8%)84,659,605 142,697,724 Total Common Equities in Core Holdings(100.1%)490,408,724 687,644,373 Call Options written(100 shares per contract)Canadian call options written (650)Bank of Montreal$140 December 2024

127、(40,950)(34,775)(400)Bank of Nova Scotia$77 December 2024 (33,800)(139,000)(390)Canadian Imperial Bank of Commerce$92 December 2024 (45,630)(54,210)(370)Canadian Imperial Bank of Commerce$92 January 2025 (65,490)(62,160)(500)Royal Bank of Canada$180 December 2024 (39,500)(49,500)(530)Toronto-Dominio

128、n Bank$82 December 2024 (31,800)(21,995)Total Canadian call options written(-0.1%)(257,170)(361,640)21Canadian BanC Corp.sCHedule of portfolio investMents(Continued.)as at noveMBer 30,2024 No.of shares Description Average Cost($)Fair (contracts)(Premiums received)Value ($)U.S.call options written (5

129、00)Bank of America Corp.$50 December 2024 (16,802)(11,901)(250)Citigroup Inc.$72 December 2024 (35,329)(44,455)(50)Goldman Sachs Group Inc.$635 December 2024 (28,704)(24,573)(40)Goldman Sachs Group Inc.$645 January 2025 (50,685)(51,245)(200)J.P.Morgan Chase&Co.$260 December 2024 (44,589)(37,664)(100

130、)Morgan Stanley$137 December 2024 (13,581)(14,142)Total U.S.call options written(0.0%)(189,690)(183,980)489,961,864 687,098,753 Less adjustments for transaction costs (160,345)Total Investments(100.0%)489,801,519 687,098,753 221.Incorporation Canadian Banc Corp.(the“Company”)is a mutual fund corpora

131、tion established under the laws of the Province of Ontario on May 25,2005 that began investment operations on July 15,2005.The manager and the investment manager of the Company is Quadravest Capital Management Inc.(“Quadravest”or“Manager”).The Companys principal office is located at 200 Front Street

132、 West,Suite 2510,Toronto,Ontario M5V 3K2.The Company invests in an actively managed portfolio of common shares comprised primarily of 6 Canadian chartered banks.The Company employs an active covered call writing program to enhance the income earned from the portfolio.In connection with the extension

133、 of the Companys term for a further five year period from December 1,2023 to December 1,2028,a special retraction right was offered allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 30,2023 net asset value of$18.75 per unit($1

134、0.00 per Preferred share and$8.75 per Class A share).8,523,887 Preferred shares and 51,483 Class A shares were tendered for retraction and a total of$85,689,346 was paid subsequent to the year-end on December 15,2023 in connection with the special retraction.In order to restore an equal number of Pr

135、eferred shares and Class A shares,the Company completed a secondary offering of 8,674,000 Preferred shares for net proceeds of$82,305,044 on November 23,2023.The termination date of the Company may be extended thereafter at the Companys discretion for additional terms of five years each.Shareholders

136、 will be provided with a special retraction right in connection with any such extension.2.Basis of presentationThese financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board(“IFRS Accounting Stand

137、ards”).These financial statements have been prepared under the historical cost convention,as modified by the revaluation of financial assets and financial liabilities(including derivative financial instruments)at fair value through profit or loss(“FVTPL”).These financial statements were approved by

138、the Board of Directors of the Company on February 20,2025.3.Material accounting policy informationThe following is a summary of material accounting policy information applicable to the Company.Investments and financial instrumentsThe Company classifies its investments,including derivatives,based on

139、both the Companys business model for managing those financial assets and the contractual cash flow characteristics of the financial assets.The portfolio of financial assets is managed and performance is evaluated on a fair value basis.The Company is primarily focused on fair value information and us

140、es that information to assess the assets performance and to make decisions.The Company has not taken the option to irrevocably designate any equity securities as fair value in other comprehensive income(“FVOCI”).Consequently,all investments,including derivatives are measured at fair value through pr

141、ofit or loss.The Companys obligations for net assets attributable to holders of redeemable Class A shares are presented at the annual redemption amount.All other financial assets and liabilities are recognized initially at fair value and subsequently measured at amortized cost,which approximates fai

142、r value.Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202323The Company recognizes regular purchases and sales of financial instruments on the trade date,which is the date on which it commits to purchase or sell the instrument.Transaction costs,such as

143、brokerage commissions,related to financial assets and financial liabilities at FVTPL are expensed as incurred and transaction costs related to financial instruments not at FVTPL are included in the carrying amounts thereof.A financial asset is derecognized when the rights to receive cash flows from

144、the investment have expired or have been transferred and when the Company has transferred substantially all the risks and rewards of ownership of the asset.Dividends are recognized as income on the ex-dividend date.Realized gains and losses and unrealized appreciation and depreciation are determined

145、 on an average cost basis.The cost of investments is determined using the average cost method.Written option premiums received by the Company are,so long as the options are outstanding,reflected as a liability,in the Statements of Financial Position and are valued at an amount equal to the current m

146、arket value of an option that would have the effect of closing the position.Gains or losses realized upon expiration or exercise of the option are included in net realized gain(loss)on investments and derivatives in the Statements of Comprehensive Income/(Loss).The Preferred shares rank prior to the

147、 Class A and Class B shares and are thus not subordinate to all other classes of puttable instruments and therefore,the shares have been classified as financial liabilities.These shares are carried at amortized cost.Amortization of premiums or discounts on the issuance of Preferred shares is include

148、d in the Statements of Comprehensive Income/(Loss).The Class B shares are subordinate to the Preferred shares but rank prior to the Class A shares and are thus not subordinate to all other classes of puttable instruments and therefore,the shares have been classified as financial liabilities.These sh

149、ares are carried at amortized cost.The Class A shares may be retracted monthly,annually,or on the termination date of the Company.As a result,the shares contain multiple contractual obligations,and therefore,have been presented as financial liabilities.The net asset value of the Company is determine

150、d in accordance with requirements of law,including National Instrument 81-106,Investment Fund Continuous Disclosure,and is used to process shareholder transactions.For financial reporting purposes under IFRS Accounting Standards,net assets of the Company is determined as the difference between the a

151、ggregate amount of the Companys assets and the aggregate amount of its liabilities,excluding Preferred shares and net assets attributable to holders of redeemable Class A shares(“Net Assets of the Company”).Preferred shares and Class A shares are issued on the basis that an equal number of Preferred

152、 shares and Class A shares(together,a“unit”)will be issued and outstanding at all material times.At times when there is an unequal number of Class A and Preferred shares outstanding,a notional unit amount will be determined as the quotient of the total net asset value of the Company and the sum of t

153、he net asset value per share attributable to Class A shares and Preferred shares.Valuation of investmentsFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.The fair value of fin

154、ancial assets and liabilities traded in active markets(such as publicly traded shares and options)are based on the last traded prices at the close of trading on the reporting date.The Company uses the last traded market price for both financial assets and financial liabilities where the last traded

155、price falls within that days bid-ask spread.In circumstances where Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202324the last traded price is not within the bid-ask spread,the Manager determines the point within the bid-ask spread that is most represe

156、ntative of fair value based on the specific facts and circumstances.The Companys policy is to recognize transfers into and out of the fair value hierarchy levels as of the date of the event or change in circumstances giving rise to the transfer.The fair value of financial assets and liabilities that

157、 are not traded in an active market is determined using valuation techniques.The Company uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.Valuation techniques include the use of comparable recent arms length transactions,reference to

158、 other instruments that are substantially the same,discounted cash flow analysis,option pricing models and others commonly used by market participants and which make the maximum use of observable inputs.Refer to note 5 for further information about the Companys fair value measurements.CashCash is co

159、mprised of demand deposits with a financial institution.Translation of foreign currenciesThe Companys functional and presentation currency is Canadian dollars.The fair value of investments and other assets and liabilities in foreign currencies are translated into the Companys functional currency at

160、the rates of exchange prevailing at each measurement date.Purchases and sales of investments,income and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions.Management fees,administration fees and performance feesManagement fees and administration

161、fees are accrued by the Company over time,as services are rendered by Quadravest.At each measurement date,the Company recognizes an expense and financial liability based on the amount,if any,of performance fees expected to be paid based on the net asset value of the Company.Refer to note 7 for furth

162、er information about the calculation of management,administration fees and performance fees,if any,of the Company.Increase(decrease)in net assets attributable to holders per redeemable Class A shareIncrease(decrease)in net assets attributable to holders per redeemable Class A share is based on the i

163、ncrease or decrease in net assets attributable to holders of redeemable Class A shares divided by the weighted average number of such shares outstanding during the year.Refer to note 8 for the calculation.TaxationThe Company qualifies as a mutual fund corporation under the Income Tax Act(Canada)(the

164、“Tax Act”)and it is subject to income tax in each taxation year on the amount of its net income for the taxation year,including net realized taxable capital gains,if any,at the rate applicable to mutual fund corporations.The general income tax rules associated with a public corporation also apply to

165、 a mutual fund corporation with the exception that taxes payable on net realized capital gains are refundable on a formula basis when its shares are redeemed or when it pays capital gains dividends out of its capital gains dividend account to its shareholders.Canadian BanC Corp.notes to tHe finanCia

166、l stateMentsfor tHe years ended noveMBer 30,2024 and 202325Interest and foreign income are taxed at normal corporate rates applicable to mutual fund corporations and can be reduced by permitted deductions for tax purposes.All of the Companys expenses including management fees,administration fees and

167、 operating expenses will be taken into account in determining its overall tax liability.As a mutual fund corporation,taxable dividends received from taxable Canadian corporations are subject to a Part IV tax of 38 1/3%.Such taxes are fully refundable upon payment of taxable dividends to its sharehol

168、ders on a basis of$1.15 for every$3 of dividends paid.Any such tax paid is reported as an amount receivable until recovered through the payment to shareholders of dividends out of net investment income.All tax on net taxable realized capital gains is refundable when the gains are distributed to shar

169、eholders as capital gains dividends or through redemption of shares at the request of shareholders,while the Company qualifies as a mutual fund corporation.As a result of the capital gains refund mechanism and Part IV tax refunds,the Company recovers any Canadian income taxes paid in respect of its

170、capital gains and taxable Canadian dividends.As a result,the Company has determined that it is in substance not taxable.Consequently,the tax benefit of capital and non-capital losses and other temporary differences have not been reflected in the Statements of Financial Position as deferred income ta

171、x assets or liabilities.The Company has estimated accumulated non capital losses for tax purposes as at November 30,2024 of$22,276,939(November 30,2023-$26,125,259)that are available to lower taxable income in future years if required and expire after the scheduled termination date of the Company on

172、 December 1,2028.The Company also has estimated accumulated capital losses for tax purposes of$1,280,570(November 30,2023-$1,280,570)which may be used to lower future capital gains if required and which do not expire.4.Critical Accounting Estimates and JudgmentsThe preparation of these financial sta

173、tements include estimates and assumptions by management based on past experiences,present conditions and expectations of future events.Where estimates were made,the reported amounts for assets,liabilities,income and expenses may differ from the amounts that would otherwise be reflected if the ultima

174、te outcome of all uncertainties and future events were known at the time these financial statements were prepared.The Companys most significant estimates involve the measurement of investments and derivatives at fair value as described in note 5.5.Management of Risk of Financial InstrumentsThe Compa

175、ny classifies fair value measurements within a hierarchy which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.The three levels of the fair value hierarchy are:Level 1-Quoted prices(unadjusted)in

176、active markets for identical assets or liabilities that the entity can assess at the measurement date;Level 2-Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,either directly or indirectly;andLevel 3-Inputs that are unobservable for the asset or

177、liability.Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202326The following table illustrates the classification of the Companys financial instruments within the fair value hierarchy as at November 30,2024 and November 30,2023:Financial assets and liabi

178、lities at fair value as at November 30,2024 Level 1 Level 2 Level 3 TotalEquities$687,644,373-$687,644,373Options($545,620)-($545,620)$687,098,753-$687,098,753 Financial assets and liabilities at fair value as at November 30,2023 Level 1 Level 2 Level 3 TotalEquities$432,093,317-$432,093,317Options(

179、$603,455)-($603,455)$431,489,862-$431,489,862All fair value measurements above are recurring and fair values are classified as Level 1 when the related security or derivative is actively traded and a quoted price is available.There were no transfers or reclassifications between levels for the years

180、ended November 30,2024 and 2023.The Companys investment activities expose it to a variety of financial risks:market risk(including price risk,interest rate risk and currency risk),credit risk and liquidity risk.Any sensitivity analysis presented below may differ from actual results and the differenc

181、e could be material.Market Price RiskAll securities investments present a risk of loss of capital.The 6 core holdings were selected because of their long term history of market price appreciation and dividend growth.These portfolio companies were selected from the banking sector of the financial ser

182、vices index of the S&P/TSX 60 index and are among the largest financial services companies in Canada.The market price risk is affected by three main components:price risk,interest rate risk and foreign currency movements.Price riskOther price risk is the risk that the value of financial instruments

183、will fluctuate as a result of changes in market prices(other than those arising from interest rate risk or currency risk).The supplemental covered call writing program generates an additional stream of income to the portfolio which may also help mitigate against market price declines during years in

184、 which a particular portfolio company has a covered call option written against that position.The Company is exposed to other price risk from its investment in equity securities and written options.As at November 30,2024,had the prices on the respective stock exchanges for these equity securities in

185、creased by 10%,with all other variables held constant,Net Assets of the Company would have increased by approximately$65,599,000(November 30,2023$40,221,000).Similarly,had the prices on the respective stock exchanges for these equity securities decreased by 10%,with all other variables held constant

186、,Net Assets of the Company would have decreased by approximately$68,464,000(November 30,2023$42,877,000).Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202327Interest rate riskInterest rate risk is the risk that the fair value of interest bearing financi

187、al instruments will fluctuate due to changes in market interest rates.The majority of the Companys financial assets and liabilities are non interest bearing.The Preferred shares have a floating distribution rate policy based on the prevailing Canadian prime rate plus 1.5%,with a minimum annual rate

188、of 5%and a maximum annual rate of 8%based on the$10 repayment value of the Preferred shares.If the Canadian prime rate increased or decreased by 1%,there would be no material impact on the dividends payable to the Preferred shares.As a result,the Company is not subject to significant amounts of risk

189、 due to fluctuations in the prevailing levels of market interest rates and considers interest rate risk insignificant as at November 30,2024 and 2023.Currency riskCurrency risk is the risk that financial instruments that are denominated in a currency other than the Canadian dollar,which is the Compa

190、nys reporting currency,will fluctuate due to changes in exchange rates.Certain portfolio holdings are listed on the New York stock exchange and trade in U.S.dollars.As at November 30,2024,19.6%(November 30,2023-14.0%)of the Net Assets of the Company are invested in U.S.dollar denominated assets whic

191、h includes U.S.dollar cash held.As a result,the Companys Net Assets will be affected by changes in the U.S.dollar relative to the Canadian dollar.The Company has not entered into currency hedging contracts.If the Canadian dollar appreciated/depreciated by 5%against the U.S.dollar,the Net Assets of t

192、he Company would decrease/increase by approximately$7,510,000(November 30,2023-$4,226,200).Other risksCredit riskCredit risk is the risk that a counterparty will be unable to pay amounts in full when due.All of the Companys transactions are in listed securities and options and are settled and paid f

193、or using approved brokers.The risk of default is considered minimal as delivery of securities sold is only made once the broker has received payment.Payment is made on purchase once the securities have been received by the broker.Cash is held with a reputable and regulated financial institution.As a

194、t November 30,2024 and 2023,the Company did not have significant credit risk exposure.Liquidity riskLiquidity risk is the risk that the Company may not be able to settle or meet its obligations on time or at a reasonable price.The Company is exposed to liquidity risk primarily through its monthly an

195、d annual retractions of Class A shares and Preferred shares.The Company receives adequate notice for all retraction requests.The Companys portfolio is invested in highly liquid large capitalization investments that trade on the Toronto Stock Exchange(“TSX”)and the New York Stock Exchange.All Class A

196、 shares and Preferred shares outstanding are redeemable on a monthly and annual basis but are scheduled to be redeemed upon termination of the Company.As at November 30,2024 and 2023 all other financial liabilities are payable within three months from the end of the year.Canadian BanC Corp.notes to

197、tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202328Concentration riskThe Companys portfolio is concentrated in the banking sector and as such will be exposed to the specific factors that affect this sector.An individual portfolio holding could be as high as 20%of the net asset va

198、lue of the Company.The Companys investment portfolio is concentrated in the following segments as at:November 30,2024 November 30,2023Canadian common equities 70.9%58.1%U.S.common equities 18.6%13.7%Canadian call options written 0.0%-0.1%U.S.call options written 0.0%0.0%Other assets less liabilities

199、 (excluding Preferred shares)10.5%28.3%100.0%100.0%6.Redeemable UnitsPreferred sharesThe Company is authorized to issue an unlimited number of Preferred shares.Preferred share transactions November 30,2024 November 30,2023Beginning of year 36,456,182 16,109,282Issued during the year 6,213,300 20,346

200、,900Redeemed during the year(8,523,887)-End of year 34,145,595 36,456,182 Preferred shareholders are entitled to receive a cumulative preferential floating rate monthly dividend at an annual rate equivalent to the prevailing Canadian prime rate plus 1.5%,with a minimum annual rate of 5%and a maximum

201、 annual rate of 8%based on the$10 repayment value.All Preferred shares outstanding on the termination date will be redeemed by the Company on that date.The Preferred shares have been presented as liabilities in the financial statements.Preferred shares trade under the symbol“BK.PR.A”on the TSX.The t

202、rading price of Preferred shares on the TSX was$10.42 as at November 30,2024(November 30,2023-$9.84).Preferred shares may be surrendered at any time for retraction at specified retraction amounts,but will be retracted only on the last business day of each month.Shareholders who concurrently retract

203、a Preferred share and a Class A share in the month of July in each year will be entitled to receive an amount equal to the net asset value per unit calculated on the last business day of July.Preferred shares retracted in any other month will receive a retraction price based on a discounted specifie

204、d retraction formula.Under the terms of a recirculation agreement,the Company may,but is not obligated to,require the recirculation agent to use its best efforts to find purchasers for any Preferred shares or Class A shares tendered for retraction.The Preferred shares rank in priority to the Class A

205、 shares and Class B shares with respect to the payment of dividends.Preferred shares rank in priority to the Class A shares upon termination of the Company.The Company announced on May 27,2024 that the TSX accepted its notice of intention to make a Normal Course Issuer Bid(the“NCIB”)to purchase its

206、Preferred shares and Class A shares through the facilities of the TSX and/or alternative Canadian trading systems.The NCIB commenced on May 29,2024 and will terminate on May 28,2025.Pursuant to the NCIB,the Company proposes to purchase,from time to time,if it is considered advisable,up to 3,029,772

207、Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202329Preferred shares and 2,968,093 Class A shares of the Company,representing 10%of the public float of 30,297,724 Preferred shares and 29,680,939 Class A shares.As of May 15,2024,there were 30,320,295 Pre

208、ferred shares and 29,714,699 Class A shares issued and outstanding.The Company will not purchase,in any given 30-day period,in the aggregate,more than 606,405 Preferred shares or more than 594,293 Class A shares,being 2%of the issued and outstanding Preferred shares and Class A shares as of May 15,2

209、024.The previous NCIB which commenced on May 29,2023 terminated on May 28,2024.There were no Preferred shares nor Class A shares purchased for cancellation during the year ended November 30,2024 and the year ended November 30,2023.The Company may issue shares to the public from time to time,at the C

210、ompanys discretion,under an at-the-market equity program(the“ATM Program”).Any Class A shares or Preferred shares sold in the ATM Program will be sold through the TSX or any other marketplace in Canada on which the Class A shares and Preferred shares are listed,quoted or otherwise traded at the prev

211、ailing market price at the time of sale.During the year ended November 30,2024,6,213,300 Preferred shares were sold through the ATM Program at an average selling price of$10.11 per Preferred share.Gross proceeds,net proceeds and commissions on the Preferred share sales were$62,834,395,$61,785,368 an

212、d$1,049,027,respectively.During the year ended November 30,2023,9,312,900 Preferred shares were sold through the ATM Program at an average selling price of$10.03 per Preferred share.Gross proceeds,net proceeds and commissions on the Preferred share sales were$93,452,435,$91,116,500 and$2,335,935,res

213、pectively.The Company issued 8,674,000 Preferred shares at$9.80 per shares for gross proceeds of$85,005,200 pursuant to a secondary offering that was completed on November 23,2023.Agents fees and issuance costs on the Preferred shares were$2,700,156 in connection with this offering.The Company issue

214、d 2,360,000 Preferred shares at$10 per shares for gross proceeds of$23,600,000 pursuant to a secondary offering that was completed on January 31,2023.Agents fees and issuance costs on the Preferred shares were$767,076 in connection with this offering.Class A shares and Class B sharesAuthorized An un

215、limited number of Class A shares 1,000 Class B sharesClass A share transactions November 30,2024 November 30,2023Beginning of year 27,091,782 16,220,682Issued during the year 7,296,200 10,871,100Redeemed during the year(51,483)-End of year 34,336,499 27,091,782Class A shares were originally issued a

216、t$15 per share.Class A shareholders receive monthly cash distributions targeted to be at a rate of 15%annualized based on the volume weighted average market price of the Class A shares for the last 3 trading days of the preceding month.The net asset value per unit must remain above the required$15 p

217、er unit threshold for monthly distributions to be declared.All Class A shares outstanding on the termination date will be redeemed by the Company on that date.Class A shares trade under the symbol“BK”on the TSX.The trading price of Class A shares on the TSX was$12.00 as at November 30,2024(November

218、30,2023-$9.78).Class A shares may be surrendered at any time for retraction at specified retraction amounts,but will be retracted only on the last business day of each month.Shareholders who concurrently retract a Class A share Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended

219、noveMBer 30,2024 and 202330and a Preferred share in the month of July in each year will be entitled to receive an amount equal to the net asset value per unit calculated on the last business day of July.Class A shares retracted in any other month will receive a retraction price based on a discounted

220、 specified retraction formula.Under the terms of a recirculation agreement,the Company may,but is not obligated to,require the recirculation agent to use its best efforts to find purchasers for any Preferred shares or Class A shares tendered for retraction.Gains or losses from the redemption of shar

221、es,if any,are recorded in gain(loss)on redemptions on the Statements of Comprehensive Income/(Loss).The Preferred shares rank in priority to the Class A shares with respect to the payment of dividends.Upon the termination of the Company,Class A shareholders will receive an amount equal to the net as

222、set value per unit less$10(the redemption value of the Preferred shares).During the year ended November 30,2024,7,296,200 Class A shares were sold through the ATM Program at an average selling price of$10.96 per Class A share.Gross proceeds,net proceeds and commissions on the Preferred share sales w

223、ere$79,933,632,$78,708,937 and$1,224,695,respectively.During the year ended November 30,2023,9,311,100 Class A shares were sold through the ATM Program at an average selling price of$12.79 per Class A share.Gross proceeds,net proceeds and commissions on the Class A share sales were$119,045,151,$116,

224、069,314 and$2,975,837,respectively.The Company issued 1,560,000 Class A shares at$13.75 per shares for gross proceeds of$21,450,000 pursuant to a secondary offering that was completed on January 31,2023.Agents fees and issuance costs on the Class A shares were$1,024,326 in connection with this offer

225、ing.The holders of Class B shares are not entitled to receive dividends.The Class B shares are retractable at a price of$1.00 per share.Class B shareholders are entitled to one vote per share.On July 15,2005,the Company issued 1,000 Class B shares to Canadian Banc Corp.Holding Trust for cash conside

226、ration of$1,000.7.ExpensesThe Company is responsible for all expenses incurred in connection with the operation and administration of the Company,including,but not limited to,accounting and administration fees,custodian fees,transfer agent fees,legal and audit expenses,fees payable to the independen

227、t directors of the Company and the Companys independent review committee,regulatory filing and stock exchange fees,costs of reporting to shareholders and costs and expenses arising as a result of complying with all applicable laws,regulations and policies.Pursuant to the management agreement,Quadrav

228、est is entitled to an administration fee payable monthly in arrears at an annual rate of 0.20%of the net asset value of the Company,which includes the outstanding Preferred shares,calculated as at each month-end valuation date.Pursuant to the terms of the investment management agreement,Quadravest i

229、s entitled to a base management fee payable in arrears at an annual rate equal to 0.65%of the net asset value of the Company,which includes the outstanding Preferred shares,calculated as at each month-end valuation date.In addition,Quadravest is entitled to receive a performance fee subject to the a

230、chievement of certain pre-established total return thresholds.Total management fees of$5,500,367(November 30,2023-$3,910,833),incurred during the year ended November 30,2024,include the administration fee and base management fee.As at November 30,2024,$532,047(November 30,2023-$389,968)was payable t

231、o the Manager with respect to the administration fee and investment management fee.No performance fees were paid during the years ended November 30,2024 and 2023.Total brokerage commission paid during the year ended November 30,2024 by the Company for its portfolio transactions were$153,921(November

232、 30,2023-$143,658).Brokerage commissions Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202331paid to certain brokers may,in addition to paying for the cost of brokerage services in respect of portfolio transactions,also provide for the cost of investmen

233、t research services provided to the investment manager.The value of such research services included in commissions paid to brokers for the year ended November 30,2024 amounted to$6,420(November 30,2023-$11,247).For the year ended November 30,2024,fees paid or payable to PricewaterhouseCoopers LLP an

234、d other PwC Network firms for the audit of the financial statements of the Company were$23,278.Fees for other services,which pertained largely to the issuance of shares of the Company,were$59,690.8.Increase(decrease)in net assets attributable to holders per redeemable Class A shareThe increase(decre

235、ase)in net assets attributable to holders per redeemable Class A share for the years ended November 30,2024 and 2023 is calculated as follows:2024 2023 Increase(decrease)in net assets attributable to holders of redeemable Class A shares$160,022,207($40,412,701)Weighted average Class A shares outstan

236、ding 30,469,341 22,379,870 Increase(decrease)in net assets attributable to holders per redeemable Class A share$5.25($1.81)9.DistributionsDistributions per share were as follows:November 30,2024 November 30,2023Preferred shares$0.7946$0.7992Class A shares$1.6256$1.921210.Capital ManagementThe Compan

237、y considers its capital to consist of Class A,Class B and Preferred shares.The Companys objectives in managing its capital are:i)To provide holders of Preferred shares with a cumulative preferential floating rate monthly dividend at an annual rate equivalent to the prevailing Canadian prime rate plu

238、s 1.5%,with a minimum annual rate of 5%and a maximum annual rate of 8%based on the$10 repayment value and to pay holders the$10 repayment value of those shares on the termination of the Company;andii)To provide holders of Class A shares with monthly cash distributions targeted to be at a rate of 15%

239、annualized based on the volume weighted average market price of the Class A shares for the last 3 trading days of the preceding month and to pay the original issue price of those shares on the termination of the Company.The net asset value per unit must remain above the required$15 per unit threshol

240、d for monthly distributions to be declared.In order to manage its capital structure,the Company may adjust the amount of dividends paid to shareholders or return capital to shareholders.Canadian BanC Corp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202332Canadian BanC C

241、orp.notes to tHe finanCial stateMentsfor tHe years ended noveMBer 30,2024 and 202311.Reconciliation of net asset value per Class A share to net assets attributable to holders per redeemable Class A shareAs at November 30,2024 and November 30,2023,there were no differences between net asset value per

242、 Class A share used for transactional purposes and net assets attributable to holders per redeemable Class A share for financial reporting purposes.12.New IFRS Accounting StandardIn April 2024,the International Accounting Standards Board issued IFRS 18,“Presentation and Disclosure in the Financial S

243、tatements”which aims to improve the quality of financial reporting by introducing new requirements which include new required categories and subtotals in the statement of comprehensive income and enhanced guidance on grouping of information.IFRS 18 replaces IAS 1,“Presentation of Financial Statement

244、s”.This standard is effective for annual periods beginning on or after January 1,2027,with early adoption permitted.The Company is currently assessing the impact of these new requirements.33notes34notes35Quadravest Capital ManageMent inC.Quadravest Capital Management Inc.was formed in 1997 and is fo

245、cused on the creation and management of enhanced yield products for retail investors.The investment strategy combines fundamental based equity investing with covered call writing.Guided by four key principles,Quadravest sets attainable investment objectives that allow the team to stay focused on a l

246、ong-term investment strategy.The four principles innovation in financial products,discipline in investment management,solid results for investors,and excellence in client service form the foundation of Quadravest.Each member of the firms tight-knit team is committed to upholding these principles,ens

247、uring a coherence and dedication that is unique to the Company.Quadravest has raised over$2.5 billion in initial public offerings.Board of direCtorsWayne Finch,Peter Cruickshank,Director,President,Chief Executive Director,and Chief Investment Officer,Quadravest Capital Management Inc.Quadravest Capi

248、tal Management Inc.Laura Johnson,Michael W.Sharp,Chief Investment Strategist Retired Partner,and Portfolio Manager,Blake,Cassels&Graydon LLP Quadravest Capital Management Inc.John Steep,President,S.Factor Consulting Inc.Corporate detailsAuditor Transfer Agent PricewaterhouseCoopers LLP Computershare

249、 Investor Service Inc.18 York Street,Suite 2500 100 University Avenue Toronto,Ontario M5J 0B2 Toronto,Ontario M5J 2Y1Legal Counsel CustodianBlake,Cassels&Graydon LLP RBC Investor Services TrustCommerce Court West,Suite 4000 155 Wellington St.WestToronto,Ontario M5L 1A9 Toronto,Ontario M5V 3L3200 Front Street West Suite 2510,Toronto,ON M5V 3K2 Tel:416.304.4443 Toll:877.4QUADRA or 877.478.2372 Fax: