MONTRÉAL, March 29, 2019 /CNW Telbec/ - Last year, the Québec government authorized CRCD to exchange an annual amount of $100 million in 2018, 2019 and 2020, allowing shareholders to defer for seven years, starting from the acceptance date of their request, the right to redeem their eligible shares, that is, shares held for at least seven years, for a 10% tax credit. Qualifying for this measure are CRCD shareholders who have never redeemed shares.
As total demand for the 2018 share exchange amounted to $210 million, more than double the offering, a random selection was made to determine the approximately 8,700 shareholders who received the applicable tax credit.
"Share exchanges allow us to reinvest more capital in economic development and accelerate the pace of our investments to support SMEs across all regions of Québec," noted Luc Ménard, Chief Operating Officer of Desjardins Capital, CRCD's manager. "In fact, together with our partner funds, we plan to invest $350 million in 2019, compared with $220 million in 2018, for an increase of 60%."
Terms and conditions of the 2019 share exchange
Between April 15 and June 7, 2019, shareholders interested in this option may make a request to exchange their current eligible shares, up to a value of $15,000, for a new class of shares which they will also be required to hold for at least seven years. The authorized provincial tax credit amounts to 10% of the value of the shares exchanged, or a potential credit of $1,500 for 2019.
On April 15, 2019, the 53,000 shareholders will receive a personalized communication by mail inviting them to complete their request online (www.desjardins.com/crcd-exchange) or by mail. If total demand for the exchange, which has an estimated potential of $552 million, exceeds the authorized amount of $100 million, CRCD will proceed with a random selection involving all shareholders who have completed a request. If demand does not exceed supply, all shareholders will be accepted for exchanges.
The CRCD shares are not guaranteed, their value fluctuates and their past performance is not indicative of their future returns. Investment fees may apply. Please read the prospectus before deciding whether to invest or to exchange your shares.
About Capital régional et coopératif Desjardins
With nearly 108,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $2,169 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 its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. CRCD supports the growth of nearly 470 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 58,000 jobs. (www.capitalregional.com)
SOURCE Capital régional et coopératif Desjardins
For further information: For journalists only, Richard Lacasse, Capital régional et coopératif Desjardins, 418 835-8444 or 1 866 835-8444, ext. 5563163, [email protected]; For investors, Shareholder Services, 1 888 522-3222