Premium Income Corporation Drafts At-The-Market Equity Program

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TORONTO, July 2, 2021 /CNW Telbec/ – (TSX: PIC.A) (TSX: PIC.PR.A) Premium Income Corporation (the “Fund”) is pleased to announce that it has established an at-the-market equity program (“ATM- program”) through which the Fund may from time to time issue shares of the Fund to the public, at the discretion of the Fund, in effect until September 8, 2022, unless the Fund cancels before that date. All Class A Shares or Preferred Shares sold in the ATM program will be sold through the Toronto Stock Exchange (the “TSX”) or other marketplace in Canada on which the Class A Shares and Preferred Shares are listed, listed or otherwise traded at the prevailing market price at the time of sale. The sale of Class A Shares and Preferred Shares through the ATM program will be made in accordance with the terms of a share distribution agreement of July 2, 2021 (the “Stock Distribution Agreement”) with National Bank Financial Inc. (the agent”).

The sale of Class A Shares and Preferred Shares will be made through “at-the-market distributions” as defined in National Instrument 44-102 Shelf Distributions on the TSX or any marketplace for the Class A Shares and Preferred Shares in Canada. Since the Class A Shares and Preferred Shares will be distributed at prevailing market prices at the time of sale, prices may vary between buyers during the period of distribution. The ATM program is offered pursuant to a prospectus supplement dated July 2, 2021 to the Fund’s prospectus in abbreviated form, dated August 7, 2020. The maximum gross proceeds from the issue of the shares is $50,000,000. Copies of the Prospectus Supplement and the Basic Plan Shortened Prospectus may be obtained from your registered financial advisor using that advisor’s contact information, or from agents’ representatives and are available on SEDAR at www.sedar.com.

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The volume and timing of distributions under the ATM program, if any, will be determined in the sole discretion of the Fund. The Fund intends to use the proceeds of the ATM program in accordance with the Fund’s investment objectives and strategies, subject to the Fund’s investment restrictions.

The Fund invests in a portfolio consisting primarily of ordinary shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and the Toronto-Dominion Bank. In order to generate returns in excess of the dividend income earned on the Fund’s portfolio, the Fund may write selectively covered call and put options in respect of some or all of the common stocks in the Fund’s portfolio. The fund manager and investment manager is Strathbridge Asset Management Inc.

John Germain, Senior VP & CFO

Certain statements in this press release are forward-looking statements, including, but not limited to, statements identified by the expressions “intend”, “will” and similar expressions to the extent that they relate to the Fund. The forward-looking statements are not historical facts, but reflect the Fund’s current expectations with respect to future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. While the Fund believes that the assumptions inherent in forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty involved. The Fund undertakes no obligation to publicly update or otherwise revise any forward-looking statement or information as a result of new information, future events or other such factors affecting such information, except as required by law.

A concise prospectus and prospectus supplement containing important detailed information about the securities offered has been filed with securities commissions or equivalent authorities in each of the provinces of Canada. Copies of the basic board condensed prospectus are available from the Agent. Investors should read the Basic Plan Basic Prospectus and the Prospectus Supplement before making any investment decision. No sale or acceptance of an offer to purchase the securities offered will be made until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces of Canada.

Commissions, ongoing commissions, management fees and charges can all relate to investment in mutual funds. Read the prospectus before investing. Mutual funds are not guaranteed, their values ​​change regularly and past performance may not be replicated.

The securities offered are not registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to purchase securities, nor will any sale of such securities be made in any state in which such offer, solicitation or sale would be unlawful.

SOURCE Premium Income Corporation

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