TORONTO – Canadian Large Cap Leaders Split Corp. (TSX: NPS.PR.A, NPS) announced on May 29, 2026, the establishment of an at-the-market equity program (the “ATM Program”), a strategic move designed to enhance the company’s capital flexibility. This program authorizes the issuance of up to $100,000,000 of preferred shares and an additional $100,000,000 of class A shares, collectively referred to as the “Shares,” to the public.
The ATM Program allows for the periodic sale of these Shares at the company’s discretion, with transactions executed at prevailing market prices through the Toronto Stock Exchange (“TSX”) or any other Canadian marketplace where the Shares are listed or traded. This mechanism provides Canadian Large Cap Leaders Split Corp. with an efficient means to access capital directly from the market, adapting to real-time demand and pricing dynamics.
According to the company’s announcement, the volume and timing of distributions under the ATM Program will be determined solely by the Company. The program is slated to remain effective until June 28, 2028, unless terminated earlier by the Company, providing a substantial window for capital deployment. This flexible approach allows the company to raise funds incrementally, aligning with its investment opportunities and market conditions rather than through a single, large offering.
The execution of share sales under the ATM Program will be facilitated through an equity distribution agreement dated May 29, 2026, with National Bank Financial Inc. serving as the designated agent. This arrangement ensures that sales are conducted in an orderly manner, adhering to market best practices. The distributions themselves are defined as “at-the-market distributions” under National Instrument 44-102 Shelf Distributions, a regulatory framework governing such offerings in Canada.
Investors seeking detailed information regarding the ATM Program can access the relevant documentation. Sales of Shares are being made pursuant to a prospectus supplement dated May 29, 2026, which complements the Company’s short form base shelf prospectus dated May 28, 2026. Copies of both the Prospectus Supplement and the Shelf Prospectus are available through registered financial advisors, representatives of National Bank Financial Inc., and on the SEDAR+ platform at www.sedarplus.ca, ensuring full transparency for potential investors.
The net proceeds generated from the ATM Program are earmarked for a specific investment strategy. Canadian Large Cap Leaders Split Corp. intends to invest these funds, on an approximately equally-weighted basis, into a diversified portfolio primarily comprising equity securities of “Canadian Dividend Growth Companies.” This focus underscores the company’s commitment to generating returns through companies demonstrating consistent dividend performance and growth potential.
The definition of “Canadian Dividend Growth Companies” is meticulously outlined by the company. To qualify for inclusion in the portfolio, companies must meet several stringent criteria. Firstly, they must be listed on a Canadian exchange. Secondly, they are required to pay a dividend. Thirdly, these companies generally need to have a market capitalization of at least $10 billion, indicating a preference for established, large-cap entities. Fourthly, the portfolio manager must deem the options in respect of their equity securities sufficiently liquid to permit the writing of options against such securities, suggesting a strategy that may involve option writing to enhance income or manage risk. Finally, qualifying companies must possess a history of dividend growth or, in the portfolio manager’s view, exhibit high potential for future dividend growth, aligning directly with the program’s objective.
For holders of the Preferred Shares, the investment objectives are clearly defined. These shares are designed to provide fixed cumulative preferential quarterly cash distributions of $0.1875 per Preferred Share. This distribution represents an annualized return of 7% based on a Preferred Share offering price of $10.78, which was the closing price on the TSX for Preferred Shares on May 28, 2026. Furthermore, the program aims to return the original issue price of $10.00 per Preferred Share to holders on the Maturity Date, set for February 28, 2029. This maturity date is subject to potential extensions for successive terms of up to five years, as determined by the Company’s board of directors.
The establishment of this ATM Program represents a significant strategic initiative for Canadian Large Cap Leaders Split Corp., providing a flexible and continuous capital-raising mechanism. This enhanced financial capacity is intended to support the company’s core investment mandate of targeting robust Canadian dividend-growing enterprises, ultimately aiming to deliver consistent distributions and capital returns to its shareholders.
