TORONTO, Jan. 12, 2017 /CNW/ - Home Capital Group Inc. (TSX: HCG) ("Home Capital" or the "Company") is pleased to announce it has implemented a Dividend Reinvestment Plan ("DRIP"). The DRIP will offer shareholders an opportunity to increase their investment in Home Capital by receiving dividend payments in the form of common shares ("Shares") of the Company without paying additional transaction costs, broker commissions, administrative costs or other service charges.
Shares available for the reinvestment of dividends may, at the discretion of the Company, be issued from treasury or be purchased on the open market at the applicable best efforts open market purchase price, all of which will be publicly announced by the Company. Shares issued from treasury may be at a discount of up to 5% of the average market price and the discount will be determined by the Company. The average market price for treasury purchases is defined in the DRIP as the volume weighted average price of Shares traded on the Toronto Stock Exchange for the five trading days immediately preceding the relevant Dividend Payment Date.
Participation in the DRIP is optional and will not affect shareholders' cash dividends unless they elect to participate in the DRIP. Participants in the DRIP plan may obtain additional Shares of the Company by automatically reinvesting the cash dividends paid on Shares held by the DRIP plan participant. Shareholders can choose the number of Shares they would like to have enrolled in the DRIP.
Participation in the DRIP is open to all registered and beneficial shareholders in Canada. Shareholders that are resident in jurisdictions other than Canada are not eligible to participate in the DRIP at this time. Dividends are only payable as and when declared by Home Capital's Board of Directors and there is no entitlement to any dividend prior thereto.
Investors who hold Shares through a broker or other financial institution ("nominee") and wish to participate in the DRIP must enroll in the DRIP through their respective nominee agent. The administrative practices of nominees may vary and affect the manner in which shareholders can participate in the DRIP. Also, the various dates by which actions must be taken by shareholders as set out in the DRIP may differ from the dates required by the nominee.
Eligible shareholders who hold their Shares in their name may enroll online through Computershare Trust Company of Canada's self-service web portal at www.investorcentre.com, or by completing and delivering an enrollment form in accordance with the DRIP not less than five business days before a dividend record date.
The full text of the DRIP will be mailed to registered shareholders in the near future and is available on the Company's website, together with a detailed Q&A and enrollment form, at www.homecapital.com/ir_dividends.asp. Shareholders should carefully read the complete text of the DRIP and consult their financial advisors about potential tax implications before making any decisions regarding their participation in the DRIP. Dividends reinvested under the DRIP are designated as "eligible" dividends for the purposes of the Income Tax Act (Canada) and any similar provincial legislation.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Please refer to the Home Capital's 2015 Annual Report, available on Home Capital's website at www.homecapital.com, and on the Canadian Securities Administrators' website at www.sedar.com, for Home Capital's Caution Regarding Forward-looking Statements.
SOURCE Home Capital Group Inc.
For further information: Laura Lepore, AVP, Investor Relations, 416-933-5652, firstname.lastname@example.org, www.homecapital.com