Budget decisions affecting Capital régional et coopératif Desjardins
“CRCD gains an additional two-year horizon on certain measures to further support businesses in Québec’s regions”
– Marie-Hélène Nolet, Chief Operating Officer, Desjardins Capital
Montréal, March 26, 2021 – “This decision by the Québec government allows Capital régional et coopératif Desjardins (CRCD) a foreseeable horizon of two years for the acquisition of new shares and the continuance of the share exchange program, which has been extended through 2021 and 2022. As a result, CRCD will benefit from greater availability of capital to support businesses in a context of economic recovery in Québec's regions,” noted Marie-Hélène Nolet, Chief Operating Officer of Desjardins Capital, CRCD’s manager, in reference to certain measures announced yesterday in tabling the Quebec government’s 2021-2022 budget.
Annual subscription amount renewed to $140 million
Given the new government measures, CRCD will be able to plan its 2021 and 2022 fundraising activities based on an annual amount of $140 million, and a tax credit of 30%. As in past years, the 2021 pre-registration period will be carried out using an online form in late summer, from 9 a.m. on August 30 to 5 p.m. on September 20, 2021. The maximum subscription per investor will remain unchanged at $3,000.
Extension of the share exchange program set at $50 million annually
The Québec government has authorized the extension of CRCD’s share exchange program for 2021 and 2022. This measure will allow CRCD to reduce the balance of its redeemable shares, thereby ensuring greater availability of capital to support the startup and growth of Québec SMEs and cooperatives.
Note that the exchange consists of deferring for seven years the right to redeem shares held for at least seven years by an eligible shareholder, in exchange for a 10% provincial tax credit. As the authorized exchange amount has been set at $50 million for each of the two years, CRCD will announce at a later date the maximum exchangeable value per shareholder, which may not exceed $15,000. The registration period for the 2021 exchange will take place at the end of the year, from 9 a.m. on November 29, 2021 to 5 p.m. on January 7, 2022. Eligible shareholders will receive a personalized notification by mail for expressing interest using an online form.
About Capital régional et coopératif Desjardins
With more than 109,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $2,273 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Capital. These levers, with CRCD as the driving force, form an entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. As at December 31, 2020, through its network, CRCD supported the growth of 550 businesses, cooperatives and funds in various industries spanning all Québec regions. (www.capitalregional.com)
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