TORONTO, March 23 /CNW/ - HOMEQ Corporation (TSX: HEQ) today announced that it has introduced an optional dividend reinvestment plan (the Plan) for shareholders. The Plan will be available to shareholders beginning with cash dividends paid on April 13, 2010 to shareholders of record March 29, 2010.
Shareholders participating in the Plan will be able to use the cash dividends paid on their existing HOMEQ shares to purchase additional shares. Under the Plan, HOMEQ determines whether the additional shares are purchased on the secondary market or are newly issued by HOMEQ. Newly issued shares will be priced at the volume weighted average trading price of the HOMEQ shares on the Toronto Stock Exchange on the five trading days preceding the dividend payment date, subject to a possible discount of up to 5%.
HOMEQ's Board of Directors has determined that, until otherwise decided and announced, shares purchased under the Plan will be newly issued and at a discount of 4%. Therefore, participating shareholders will receive shares valued at 104 percent of the cash dividend being reinvested.
There will be no commission, service charges, or brokerage fees payable in connection with the purchase of shares under the Plan. Fractions of shares will not be issued, so a cash payment will be made in lieu of any issuance of fractional shares.
Those shareholders wishing to participate in the Plan should contact the brokerage house or financial institution where their shares are currently held and complete the required authorization form. The registration process must be completed five business days prior to the record date in respect of any dividend. Once a shareholder is enrolled in the Plan, participation will continue automatically, provided the shareholder has given standing instructions to this effect. The Plan will only be available to Canadian residents. Complete Plan details can be obtained at www.homeq.ca.
Forward Looking Statements
HOMEQ Corporation from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including the likelihood of HOMEQ's success in developing and expanding its business. These may be included in HOMEQ's and its predecessor's annual reports, regulatory filings, reports to shareholders, press releases, presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time.
About HOMEQ Corporation
HOMEQ's wholly owned subsidiary HomEquity Bank is Canada's newest Schedule 1 bank. HomEquity Bank is the only national provider of reverse mortgages to homeowners aged 60 and over, Canada's fastest growing demographic segment. HomEquity Bank originates and administers Canada's largest portfolio of reverse mortgages under the CHIP Home Income Plan brand. As of December 31, 2009, the mortgage portfolio comprised approximately 7,100 reverse mortgages with an accrued value of $866 million, secured by residential properties across Canada worth approximately $2.4 billion. HomEquity Bank has been the main underwriter of reverse mortgages in Canada since its predecessor, Canadian Home Income Plan, pioneered the concept in 1986.
HOMEQ's shares trade on the Toronto Stock Exchange under the symbol HEQ. Additional information on HOMEQ, including annual and quarterly reports can be viewed at www.homeq.ca.
SOURCE HOMEQ Corporation
For further information: For further information: Gary Krikler, Senior Vice President and Chief Financial Officer, (416) 413-4679 or Scott Cameron, Vice President, Finance, (416) 413-6605