Clarification concerning the 2014 share issue of Capital régional et coopératif Desjardins, subsequent to the June 4, 2014 Québec budget
NOTE TO SHAREHOLDERS
Montréal, June 10, 2014 – In its June 4, 2014 Budget Speech by Finance Minister Carlos Leitão, the Québec government suspended the February 2014 authorization of Capital régional et coopératif Desjardins (CRCD) to issue $150 million in shares in 2014, deferring said authorization until 2015.
In light of the 2014-2015 budget tabled on June 4, 2014, the new terms of CRCD’s 2014 issue as of the date of this Note are as follows:
- Given that the authorized amount for its 2014 capital raising campaign has been deferred and its capital limit has been reached, CRCD is limited under its constituting act to issuing an amount equivalent to the redemptions for the previous issue. Accordingly, the authorized amount for the 2014 issue is estimated at approximately $60 million, that is, the equivalent of the redemptions made during the 2013 issue;
- The rate of the Québec tax credit on the acquisition of CRCD shares is now set at 45%;
- The start date for CRCD share sales has yet to be determined, but no issue can take place prior to the end of the third quarter (September 30, 2014). CRCD will release a press release in due course informing them of the start date of share sales and any other related terms and conditions, providing a reasonable time period between the confirmation of and start of share sales under the issue.
With regard to the 2015 issue, despite having reached its $1.25 billion capital limit in 2013, CRCD will be exceptionally authorized to raise an amount of $150 million.
About Capital régional et coopératif Desjardins
With over 100,000 shareholders and $1,471 million in net assets, Capital régional et coopératif Desjardins is a public company managed by Desjardins Business Capital régional et coopératif. CRCD contributes to Québec economic development through several levers developed with its manager, with CRCD as the driving force. These levers form CRCD’s entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 360 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain 47,000 jobs. (www.capitalregional.com)