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Press release from CNW Group

CWB to redeem all of its outstanding warrants (TSX: CWB.WT)

Friday, August 19, 2011

CWB to redeem all of its outstanding warrants (TSX: CWB.WT)13:49 EDT Friday, August 19, 2011EDMONTON, Aug. 19, 2011 /CNW/ - Canadian Western Bank (TSX: CWB) ("CWB" or the "Bank") today announced that the holders of its common share purchase warrants (TSX: CWB.WT) (the "Warrants") have approved the previously announced extraordinary resolution to amend the terms of the warrant indenture. The approval by approximately 99% of all votes cast at today's meeting of warrantholders allows the Bank to proceed with the redemption of all, but not less than all, of its outstanding Warrants.Following the meeting, the Bank and Valiant Trust Company, acting as warrant agent, entered into a supplemental warrant indenture giving effect to the extraordinary resolution. Immediately thereafter, the Bank provided notice to the warrant agent that the Bank intends to redeem all outstanding Warrants on August 31, 2011. In accordance with the extraordinary resolution and supplemental warrant indenture, warrantholders will receive $17.21 in cash for each Warrant redeemed. Warrantholders who do not wish to participate in the redemption have until the close of business on August 30, 2011 to exercise their warrants.As of today, the Bank does not expect to issue any common shares pursuant to its conditional subscription agreement with Flatiron Capital Management Partners dated July 18, 2011. Assuming no additional common shares are issued and that CWB redeems all of the 4,241,745 Warrants outstanding at the end of business on August 18, 2011, the redemption is expected to be accretive to diluted earnings per common share and will reduce the Bank's regulatory capital by approximately $73 million."We are pleased with the outcome of this morning's meeting, as we believe this redemption benefits both warrantholders and CWB shareholders," said Larry Pollock, President and CEO of CWB. "Warrantholders are expected to receive a meaningful price premium over the current intrinsic value of the warrants. CWB shareholders will benefit from the elimination of the dilution that would have occurred with the issuance of additional common shares upon the exercise of the warrants. The redemption will also increase certainty with respect to managing the Bank's strong regulatory capital position."Information about the extraordinary resolution is included in the Management Information Circular (dated July 18, 2011) mailed to all Warrantholders and is available under the Bank's profile at and on the Bank's website at A copy of the supplemental indenture, the notice of redemption provided to the warrant agent and the detailed voting results of the meeting will be available shortly under the Bank's profile at Canadian Western Bank GroupCanadian Western Bank offers highly personalized service through 39 branch locations and is the largest publicly traded Canadian bank headquartered in Western Canada. The Bank specializes in mid-market commercial lending and offers a full complement of personal banking services. The Bank, along with its operating affiliates, National Leasing Group Inc., Canadian Western Trust Company, Valiant Trust Company, Canadian Direct Insurance Incorporated, Adroit Investment Management Ltd. and Canadian Western Financial Ltd., collectively offer a diversified range of financial services across Canada and are together known as Canadian Western Bank Group. The common shares of Canadian Western Bank are listed on the Toronto Stock Exchange under the trading symbol "CWB". The Bank's Series 3 Preferred Shares and common share purchase warrants trade on the Toronto Stock Exchange under the trading symbols "CWB.PR.A" and "CWB.WT", respectively. Refer to for additional information.For further information: Kirby Hill, CFA Director, Investor & Public Relations Canadian Western Bank Phone: (780) 441-3770 E-mail: Tracey Ball, FCA Executive Vice President & CFO Canadian Western Bank Phone: (780) 423-8865