North American Financial 15 Split Corp (TSE:FFN) saw its Class A shares climb on an adjusted basis Friday following the implementation of a 110-for-100 share split. The split, which took effect at the market open, means that each block of 100 old shares now converts to 110 new shares, lowering the per-share price on screens without altering the total value held by investors.
According to data from Google Finance, FFN Class A shares traded at C$10.77 as of 3:45 p.m. EDT, representing a gain of 1.08% from the previous session's adjusted close. The stock moved within a range of C$10.73 to C$11.23 during the day, with volume reaching 271,370 shares. The company's market capitalization stood at approximately C$684.4 million, based on 63.54 million shares outstanding.
On a pre-split basis, the current price of C$10.77 equates to roughly C$11.85 per old share. This is slightly above the C$11.72 close reported by Investing.com for the prior trading day on July 3, indicating a modest adjusted gain of about 1.1%.
Split Mechanics and Distribution Impact
The company stated that shareholders of record as of the close of business on July 3 will receive an additional 10 Class A shares for every 100 shares they own. No fractional shares will be issued as part of the distribution. The Class A shares began trading on an ex-split basis at the opening bell on Friday.
The split also affects the dividend calculation. North American Financial 15 confirmed it will maintain the monthly cash distribution target of C$0.11335 per Class A share following the split. However, because investors now hold more shares, the total distribution per shareholder will increase by approximately 10%.
The company declared a monthly payout of C$0.11335 for each Class A share and C$0.06250 for each preferred share, payable on July 10 to shareholders of record as of June 30. Since inception, total distributions amount to C$19.33 per Class A share and C$12.93 per preferred share.
Preferred Share Offering and Market Dynamics
North American Financial 15 announced on June 26 that it had completed overnight marketing for a preferred-share offering expected to raise approximately C$102.5 million. The offering, led by National Bank Financial Inc., is priced at C$10.90 per preferred share. Closing is scheduled for around July 6, subject to customary conditions including approval from the Toronto Stock Exchange.
In the secondary market, FFN's preferred shares (TSE:FFN.PR.A) last traded at C$10.73, down 0.09% from the previous close, according to MarketWatch. This price is below the offering price of C$10.90. At the current market quote, the annual dividend of C$0.75 per preferred share yields approximately 7.0%, while at the offering price the yield is roughly 6.9%.
The spread between the market price and the offering price is notable given the preferred shares' stated redemption target of C$10.00 per share by the current termination date of December 1, 2029, with a possible five-year extension. If the preferred shares trade above C$10.00, the total return for holders who hold until redemption includes both dividend income and potential capital appreciation.
Portfolio and Market Context
The fund's portfolio consists of Canadian and U.S. financial stocks, including major names such as Bank of Montreal (TSE:BMO), Royal Bank of Canada (TSE:RY), Toronto-Dominion Bank (TSE:TD), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), Goldman Sachs Group Inc. (NYSE:GS), and Wells Fargo & Co. (NYSE:WFC). As of June 15, the net asset value (NAV) per unit after distribution stood at C$22.16, according to Quadravest's fund page.
U.S. equity markets were closed on Friday in observance of Independence Day, as per the NYSE's 2026 holiday calendar. The TSX also recognized July 3 as a U.S. holiday, resulting in special settlement procedures for U.S. dollar-denominated trades, though Canadian markets remained open for regular trading.
Canadian equities posted gains on the day. The S&P/TSX composite index rose 1% to 35,333.96 by late morning, while the TSX financials index added 0.8%, according to Reuters. Matt Manara, executive vice president and portfolio manager at Avenue Investment Management, attributed the move to weaker U.S. job data, which reduced expectations of further interest rate hikes. “Lower rate expectations weaken the U.S. dollar, boost gold and benefit Canadian resource stocks,” Manara told Reuters.
