Demand for shares of Capital régional et coopératif Desjardins outstrips the 2016 issue limit by $9 million
Investors who can purchase shares were selected at random this morning
from among those who completed the online pre-subscription form
Montréal – “Capital régional et coopératif Desjardins (CRCD) turned 15 this year and we’re delighted to see that so many investors want to contribute to growing our local businesses. The keen interest in our 2016 share issue allows us to stay on track to our mission with support for some 410 flagship Québec companies, including 140 in the resource regions.”
Luc Ménard, Chief Operating Officer of Desjardins Business Capital régional et coopératif, was upbeat in applauding the results of the pre-subscription requests for CRCD shares that were made between September 6 and 26 using the online form. All in all, shares in an amount of $144,365,200 were spoken for by 49,553 Québec investors, for an average of $2,913 per shareholder.
46,300 investors selected at random
That being said, the Québec government has authorized CRCD to issue $135 million in shares annually for 2016 and 2017. The rate of the Québec tax credit has been set at 40% for both years. Since 2014, CRCD has set the annual maximum subscription amount per person at $3,000 to allow as many investors as possible to purchase shares.
Therefore, in accordance with the terms of the offering prospectus approved by the Autorité des marchés financiers, investors who can purchase shares were selected at random at 9:30 a.m. today from among those who completed the online pre-subscription form. The selection was supervised by the Desjardins Group Monitoring Office. The lists of investors selected will be communicated to the caisses during the week of October 3, 2016.
The probability of being selected at random was the same for all investors regardless of when the form was completed during the pre-subscription period, the desired amount of the subscription or the choice of caisse.
The 46,300 investors selected at random will be offered an appointment at their chosen caisse between October 11, 2016 and November 25, 2016 to make a formal application for subscription and verify if the product is suited to their situation. Appointments are not transferable, meaning that investors cannot offer their appointment to another individual, such as their spouse. Investors who were not selected will be informed by letter or email starting on October 11.
Driving the growth of SMEs across Québec
During the first six months of 2016, new commitments of $62 million have been authorized by CRCD and its partners in 54 companies and cooperatives, including 24 located in resource regions.
About Capital régional et coopératif Desjardins
With nearly 100,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,643 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Business Capital régional et coopératif. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 410 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 68,000 jobs. (www.capitalregional.com)