Dividend Reinvestment Plan
Timbercreek Financial (the “Company”) has established this dividend reinvestment plan (the “Plan”) to provide eligible shareholders with the opportunity to have the cash dividends declared on their common shares automatically reinvested into additional common shares of the Company.
The benefits of enrolling in the Plan include the:
- convenience of automatic reinvestment of dividends;
- flexibility to enroll 50% or 100% of your eligible common shares, providing the opportunity to reinvest all or a portion of dividends in additonal common shares, while continuing to recieve the remainder in cash; and
- ability to acquire additional shares at a potential discount and without having to pay commissions, service
For more information on the Plan, please see the Canadian Dividend Reinvestment Plan Offering Circular.
Frequently Asked Questions
The Plan provides eligible Shareholders a convenient means to purchase additional Common Shares by reinvesting their cash dividends. Common Shares acquired under the Plan will be automatically enrolled in the Plan.
Shareholders who do not enroll their Common Shares in the Plan will continue to receive dividends in the usual manner.
Shareholders may elect to enroll either 50% or 100% of their Common Shares for dividend reinvestment under the Plan.
The Plan offers Shareholders a cost-effective means to purchase additional Common Shares through the reinvestment of dividends on a regular basis and in a convenient manner.
Participants in the Plan will dollar cost-average their Common Share purchases by reinvesting dividends under the Plan on a regular monthly basis. There will be a discount of 2% from the Average Market Price (as defined below) if the Corporation issues Common Shares from the treasury of the Corporation in connection with the reinvestment of dividends. The discount will not apply to Common Shares purchased on the open market under the Plan.
No administration fees are charged to participants by the Corporation or the Plan Agent for their participation in the Plan. The Corporation will pay for any brokerage commissions on purchases of Common Shares under the Plan.
Participation in the Plan is restricted to holders of Common Shares who are residents of Canada for the purposes of the Tax Act (as defined below).
If you are a beneficial holder, to participate in the Plan, you should contact the intermediary through which you hold your Common Shares (the “CDS Participant”).
If you are a registered holder, you should contact the Plan Agent directly.
Once you have enrolled in the Plan, participation continues automatically until you terminate it, or until the Plan is terminated.
Cash dividends payable on Common Shares enrolled in the Plan will be aggregated and then used by the Plan Agent, to arrange for the purchase of Common Shares, either on the open market through a registered broker-dealer on the Toronto Stock Exchange (the “TSX”), or through a treasury issue by the Corporation at the discretion of the Manager. These new Common Shares issued pursuant to the Plan will be automatically enrolled in the Plan.
If the Manager elects for the purchase of Common Shares on the open market, and in the event that the Common Shares available in the market on the Dividend Payment Date is insufficient, the Plan Agent will purchase the remaining Common Shares from treasury.
All Common Shares will be purchased on the Dividend Payment Date (which is a date no later than the 15th day of the month or the immediately preceding Business Day in the event that the 15th day is not a Business Day) following a Dividend Record Date on which a Dividend has been declared.
If Common Shares are issued from treasury, the price will be 98% of the average of the daily volume weighted average trading prices of the Common Shares on the TSX for the five trading days in the Trading Period on which at least a board lot of Common Shares is traded.
If purchases of Common Shares under the Plan will be made on the open market, such additional Common Shares can be acquired at prevailing market rates.
The Corporation will announce by way of press release in dividend announcements whether purchases of Common Shares under the Plan will be made on the open market or from treasury.
If you are a beneficial holder, you will receive information regarding reinvestment of dividends from your intermediary in accordance with your intermediary’s administrative practices.
If you are a registered holder, the Plan Agent will provide you with a statement following each Dividend Payment Date.
If you are a beneficial holder and you wish to terminate your participation in the Plan, you should contact the intermediary through which you hold your Plan Shares sufficiently in advance of a particular Dividend Record Date. Each intermediary will have specific procedures on how to terminate participation in the Plan.
If you are a registered holder, you may terminate your participation in the Plan by contacting the Plan Agent at least five business days prior to a Dividend Record Date.
If you are a registered holder, you may withdraw some or all of your Plan Shares by contacting the Plan Agent at least five business days prior to a Dividend Record Date. You will receive a certificate for the number of whole Plan Shares withdrawn from your account typically within three weeks after the Plan Agent has given effect to the withdrawal.
You should contact a broker if you wish to sell your Plan Shares.
The Corporation will be responsible for all administrative costs of the Plan, including any commissions and brokerage charges on share purchases or the fees or other expenses incurred by the Plan Agent in carrying out its duties.
There are no charges payable by a Plan Participant upon termination of participation in the Plan. However, any expenses associated with the preparation and delivery of a termination notice will be for the account of the Plan Participant exercising its right to terminate participation in the Plan.
Generally, you will be taxed on dividends that are reinvested in Common Shares under the Plan in the same manner as you would have if you had received the dividends in cash. For a summary of certain Canadian federal income tax considerations relating to participation in the Plan, please refer to “Certain Canadian Federal Income Tax Considerations” at the end of this Offering Circular. The summary is of a general nature only and you should consult your own tax advisors for advice in respect of the tax consequences relating to participation in the Plan, having regard to your own particular circumstances.
Further questions regarding the Timbercreek Financial Corp. Dividend Reinvestment Plan should be directed to the Plan Agent at:
CST Trust Company
P.O. Box 700, Station B
Montreal, Quebec H3B 3K3
Telephone: 1-800-387-0825 or (416) 682-3860
Facsimile: 1-888-249-6189
E-mail: inquiries@canstockta.com
Or by visiting; www.canstockta.com