Mulvihill Capital Management Inc. Announces Approval of Proposal to Change Premium Income Corporation’s Investment Restrictions

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated August 8, 2024 to its short form base shelf prospectus dated August 7, 2024

TORONTO, April 23, 2026 (GLOBE NEWSWIRE) -- (TSX: PIC.A; PIC.PR.A) Mulvihill Capital Management Inc. (the “Manager”), the manager of Premium Income Corporation (the “Fund”) is pleased to announce that at a special meeting of the holders of class A shares and preferred shares of the Fund (collectively, the “Shareholders”), Shareholders approved a special resolution to change the investment restrictions of the Fund (the “Proposal”), all as more particularly described in the Fund’s management information circular dated March 5, 2026 (the “Circular”) and below.

The changes to the Fund’s investment restrictions will provide the Manager with greater flexibility to achieve the Fund’s investment objectives more efficiently such that the Fund may (i) purchase and hold substantially all of its net assets in common shares of the Banks directly and/or indirectly through investment in underlying investment funds including those managed by the Manager and (ii) invest up to 10% of its net asset value in other securities such as equity securities, fixed income securities (including preferred shares) and investment funds that provide exposure to such securities (including investment funds managed by the Manager).

For further information, please contact Investor Relations at 416.681.3966, toll free at 1-800-725-7172, email at info@mulvihill.com or visit www.mulvihill.com.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Fund on the TSX. If the shares are purchased or sold on the TSX, investors may pay more than the current net asset value when buying and may receive less than current net asset value when selling them. There are ongoing fees and expenses associated with owning shares of the Fund. An investment fund must prepare disclosure documents that contain key information about the Fund. You can find more detailed information about the Fund in these documents. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

As a result of the Proposal being approved, the investment restrictions of the Fund have been changed to the following:

• The Fund’s investment criteria provide that the Fund will purchase common shares of the Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Bank of Nova Scotia, The Toronto Dominion Bank and National Bank of Canada (the “Banks”) directly and/or indirectly through investment in underlying investment funds including those managed by the Manager and may invest up to 10% of its net asset value (“NAV”) in other securities such as equity securities, fixed income securities (including preferred shares) (“Other Securities”) and investment funds that provide exposure to such securities (including investment funds managed by the Manager).
• The Fund will not: (a) invest more than 10% of its NAV in Other Securities, (b) subject to the paragraph above, purchase debt securities unless such securities have a remaining term to maturity of less than one year and are issued or guaranteed by the Government of Canada or a province or are short-term commercial paper issued by one or more of the Banks; (c) write a call option in respect of any common share unless such common share is actually held by the Fund at the time the option is written; (d) dispose of a common share included in the Fund’s portfolio (“Portfolio”) that is subject to a call option written by the Fund unless such option has either terminated or expired; (e) write put options in respect of any security unless (i) the Fund is permitted to invest in such security, and (ii) so long as the options are exercisable, the Fund continues to hold cash equivalents sufficient to acquire the security underlying the options at the aggregate strike price of such options; (f) purchase call options or put options except as specifically permitted under NI 81-102 – Investment Funds; (g) make or retain investments that render the Preferred Shares or Class A Shares “foreign property” under Part XI of the Income Tax Act (Canada) (the “Tax Act”) or, if the Fund is a registered investment within the meaning of the Tax Act, that render it liable to tax under Part XI of the Tax Act; or (h) enter into any arrangement (including the acquisition of common shares for the Portfolio and the writing of covered call options in respect thereof) where the main reason for entering into the arrangement is to enable the Fund to receive a dividend on such shares in circumstances where, under the arrangement, someone other than the Fund bears the risk of loss or enjoys the opportunity for gain or profit with respect to such shares in any material respect.
• Notwithstanding the investment criteria listed above, the Manager may, in its discretion, invest the Fund’s Portfolio entirely in cash or cash equivalents, denominated in Canadian dollars.
  
  

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