Canso Select Opportunities Corporation ($CSOCA)

Good morning, ladies and gentlemen. The Annual General Meeting of the Shareholders of Canso Select Opportunities Corporation will now come to order. My name is Heather Mason-Wood. I'm Chair of the Board of Canso Select Opportunities Corporation, which I'll refer to as the corporation. I will be acting as Chairperson of the meeting. Welcome to the 2026 Annual General Meeting of the Shareholders of the corporation. We have the following matters of business to conduct today. First one is the presentation of the audited financial statements, together with the report of the auditors thereon for the corporation's financial year ending December 31, 2025. Second is the election of the 9 directors. The third is the reappointment of Deloitte LLP as the corporation's auditors, and fourth, to transact any other business that may properly come before this meeting. During today's meeting, officers and directors of the corporation in their presentations or in answering questions may make statements which are forward-looking statements for the purposes of applicable securities laws. Forward-looking statements are not assurances of future performance and are subject to risks and uncertainties. The actual results, performance or achievements of the corporation and its business may be materially different from the anticipated results, performance or achievements expressed or implied by forward-looking statements. Shareholders should consult the more detailed discussion of these and other risk factors relating to the corporation and its business in the corporation's most recent management discussion and analysis. Forward-looking statements are based on the officers and directors' beliefs and opinions, and undue reliance should not be placed on any forward-looking statements. The corporation does not undertake to update or supplement any forward-looking statements unless required to do so by applicable law. I would like to introduce the directors and officers of the corporation in attendance today. Would each of you please say present when you are introduced. Jason Bell, President and Chief Executive Officer, Director and member of the Investment Committee.

Present.

Shirley Sumsion, Chief Financial Officer, Director, member of the Audit Committee and member of the Investment Committee.

Present.

Neda Bizzotto, Vice President, Corporate Secretary and Director.

Present.

Tom Fernandes, Director and member of the Audit Committee.

Present.

Stephen Klubi, Director and Member of the Audit Committee.

Present.

Tony MacDougall, Director and member of the Audit Committee.

Present.

Margaret Dowdall-Logie, Director.

Present.

With your approval -- thank you, everybody. With your approval, I will ask Neda Bizzotto, Vice President and Corporate Secretary, to act as Secretary of the meeting.

Thank you.

Neda has delivered an affidavit of TSX Trust Company, the registrar and transfer agent for our A and B shares as to the mailing of the notice of the meeting, which states that on April 23, 2026, each of the notice of electronic availability of investor materials and proxy form for Class A and Class B shares was mailed to all shareholders of record as of the close of business on April 7, 2026, the record date of the meeting. With the consent of the meeting, unless there is an objection, I will dispense with the reading of the notice of the meeting. This affidavit is available if any shareholder wishes to examine it and will be attached to the minutes of this meeting. Additional copies of the notice, proxy form and circular are also available at this meeting and on CSOC's website. Neda will now discuss the procedures for transacting the business of the meeting.

Thank you, Heather. Good morning, everyone. To facilitate the meeting, the corporation has requested that certain persons make and second the formal motions, and the Chair will call on these persons at the appropriate time. Shareholders may make comments specific to these motions prior to the vote, but I would ask that any questions or comments on general matters take place at the end of the meeting. Please feel free at any time during the meeting to e-mail any questions or comments to me directly at [email protected]. When an item of business is before the meeting for consideration, questions and comments should be limited to that item. If a shareholder has a question or comment not related to a business item, an opportunity to raise other questions and comments will be provided after voting on the business described in the management information circular. Shareholders will have the opportunity to make a statement about any motion pending on the floor. If you wish to make a statement, please raise your hand to be recognized if you're attending in person or e-mail me if you're attending by teleconference. Once you are recognized, please state your name and whether you are a registered shareholder or a proxy holder. Please keep your statements brief and limited to the specific item up for discussion. We may have to interrupt any statement that continues for an unreasonable amount of time. In accordance with the corporation's bylaws, voting shall be by show of hands unless a ballot is required or demanded. Whenever a vote by show of hands is taken, the Chair will declare that the vote upon the question was either carried by a particular majority or not carried by a particular majority. When the report of the scrutineers is complete, we will announce the results. After the formal business of the meeting has been completed, Jason Bell, the President and CEO of the corporation, will give a presentation about the corporation and our business. Following that presentation, we will accept general questions from shareholders or proxy holders. If any shareholder has any matter of individual concern, please raise it after the meeting. Representatives of the corporation who are here will respond to questions after the meeting in person or via e-mail. Thank you.

Thank you, Neda. With the consent of the meeting, I shall appoint TSX Trust Company through its representatives to act as scrutineers of the meeting. A quorum for the meeting of shareholders as specified in the corporation's bylaws is two persons present in person or by proxy at the opening of the meeting who are entitled to vote not less than 5% of the shares entitled to be voted at the meeting. The scrutineers have provided me with the report on attendance, which indicates that there are present at this meeting in person or represented by proxy, 10 shareholders holding 988,353 Class A shares of the corporation, which represents 67.46% of the Class A shares and 9 shareholders holding 2,968,969 Class B shares of the corporation, which represents 79.1% of the Class B shares. Each person who is the holder of Class A multiple voting shares on the record date is entitled to 30 votes per Class A multiple voting shares so held. And each person who is a holder of Class B subordinate voting shares on the record date is entitled to 1 vote for Class B subordinate voting share so held. I hereby declare that the requisite quorum of shareholders is present and this meeting is duly and properly constituted for the transaction of business. I also direct that a copy of the scrutineers' report on attendance be attached to the minutes of this meeting. The first item of business is the presentation of the annual report, including the annual financial statements and the auditor's report thereon. Unless there is an objection, I will dispense with the reading of the auditor's report. The next item of business is the election of the 9 directors of the corporation. The management information circular made available to you listed the corporation's director nominees. The candidates for director who have been nominated to serve as directors by the corporation's Board of Directors are: myself, Heather Mason-Wood, Shirley Sumsion, Neda Bizzotto, John Carswell, Jason Bell, Tom Fernandes, Stephen Klubi, Tony MacDougall, Margaret Dowdall-Logie. Are there any further nominations? If there are no other nominations, I declare the nominations closed. A motion to elect the 9 directors as described in the management information circular is now in order.

My name is [ Jeff King, ] and I'm a Class A and Class B shareholder. I hereby move that each nominee, Heather Mason-Wood, Shirley Sumsion, Neda Bizzotto, John Carswell, Jason Bell, Tom Fernandes, Stephen Klubi, Tony MacDougall, Margaret Dowdall-Logie, be elected as directors to serve until the next Annual Meeting of Shareholders or until his or her respective successor is elected or appointed.

Does anyone second the motion?

My name is [ Faizal Mohamad, ] and I'm a Class A and Class B shareholder. I second the motion.

Are there any questions or comments on this motion? I will now call for a vote on the motion. All those in favor of the motion, please so signify by raising your right hand. Contrary, if any? The motion is carried. I declare that those nominated have been duly elected as directors of the corporation to hold office for the ensuing year or until their successors are elected or appointed. The next item of business is the reappointment of auditors. I will now ask for a motion appointing auditors for the current year.

I move that Deloitte LLP be reappointed auditors of the corporation to hold office until the close of the next Annual Meeting of Shareholders as such remuneration as may be fixed by the directors and the directors are hereby authorized to fix such remuneration.

I second the motion.

I will now call for a vote on the motion. All those in favor of the motion, please so signify by raising your right hand. Contrary, if any? The motion is carried. If any shareholder is interested in the exact number of votes cast for or against any of the motions carried at this meeting, they may obtain particulars from the Secretary of this meeting. I direct that the scrutineers' report be annexed to the minutes of this meeting. Is there any further business? If not, all business for which this meeting was called has now been completed. I will now call for a motion to conclude the formal portion of the meeting of the corporation.

I move that this meeting be concluded.

I second the motion.

I will now call for a vote on the motion. All those in favor of the motion, please so signify by raising your right hand. Contrary, if any? The motion is carried. I declare that the formal portion of this meeting of the corporation is now concluded. Thank you for attending.

Thank you, Heather. Three years ago, Canso Select Opportunities Corporation, or as we call it CSOC, made a transformational purchase of the shares of Lysander Funds Limited. It was an all-stock transaction that cost CSOC $12.25 million, and that investment is now worth $33 million, so a 3x return over three years. In addition to the growth in its market cap, it's paid CSOC a total of $5.8 million in dividends. So in dividends alone, we received about half our initial investment back. And our position in Lysander now represents about 57% of our total assets. So just a few comments on Lysander. This is an investment fund manager in Canada. We spent years educating the Canadian adviser community about its funds and setting up a very wide distribution. And the years it spent building this infrastructure alongside great performance from its partner portfolio managers, Canso Investment Council being the largest, has culminated in exponential growth that we at CSOC have been fortunate enough to share in. And so we just want to give a very big thank you to the Lysander team for all its hard work. And as we said in the letter, we are riding on our coattails and are quite happy passengers. For the remaining 43% of CSOC's assets, we hold a portfolio largely public securities and a small amount of private equity instruments. Private equity has shrunk from about 8% of our total assets in 2024 to 4% at the end of 2025. Some of this has been the outperformance of the rest of the portfolio and some has been due to a favorable exit in one of our positions at [indiscernible] Resistance. On the public equity side, we hold a fairly concentrated portfolio of securities that we believe are undervalued. Our top 5 positions at year-end included Quebecor, Bird Construction, MDA Space Limited, Cineplex and Manulife. And the top three of those positions have performed quite well over the last two years. Quebecor, now our largest position. We purchased the stock in late 2024 in the low $30 range and now trades over $65. But big picture here is we have strong conviction that it was -- Quebecor was in a very good position to steal market share, wireless subscribers from the incumbents in Canada, and it's done just that. We continue to believe Quebecor is in a great position. We also bought shares of GoPro in 2025 at a price of $0.57. We sold about 40% of the position when it rallied to $2.93. The stock is now trading at $1. We still believe it's undervalued. We sold off a decent chunk of the position after it rallied on news unrelated to its performance. So overall, we're very pleased with the performance of our equity portfolio. Our strategy remains the same when it comes to selecting investments. We look for opportunities where assets are trading well below our assessment of their fair value, intrinsic value. We're not looking for any specific types of companies. Fast-growing companies can be cheap at higher multiples and companies with zero growth can be cheap if the price is right. We're agnostic. So when we step back and consider what a shareholder owns when buying a share in CSOC, 57% of it is represented by a leading Canadian investment fund manager currently paying us in the form of regular dividends, $1.4 million per annum. And the rest of the portfolio is largely a concentrated portfolio of public securities selected and managed by CSOC's investment committee. When we add it together, our net worth at year-end was $55 million or a book value per share of $10.55. And as of today, the market value is at only $29 million or $5.55 per share. So our primary goal is to continue to make investment decisions that drive long-term underlying asset growth, but we also understand the legitimate concern from our shareholders about the very large differential between our stock price and intrinsic value. And this is something that we continue to discuss internally. We're doing our best to shed light on the differential with clear communication and disclosure but also we'll consider any other avenue that may help alleviate some of this without taking away from our primary objective. And that's all the comments I have for today. Thank you.

Thank you very much, Jason. Okay. Well, with that, I can confirm I haven't received any e-mails from any of the shareholders, and we appreciate everyone's attendance today. And thank you, shareholders, for your continued support of CSOC. We're going to end the call. Thank you.