Preferred Shares

Our Series 1 and Series 2 shares do not have fixed maturity dates and are not redeemable at the option of the holders.

Dividends (including deemed dividends) received on Series 1 shares or the Series 2 shares by an individual (other than certain trusts) will be included in the individual’s income and will be subject to the gross-up and dividend tax credit rules applicable to taxable dividends received from taxable Canadian corporations. Please consult your personal tax advisor for specific tax advice.

A holder who disposes of, or is deemed to dispose of, Series 1 or Series 2 shares (either on redemption of the shares for cash or otherwise, but not on a conversion) will generally realize a capital gain/loss to the extent that the proceeds of disposition, net of any reasonable costs of disposition, exceed (or are less than) the adjusted cost base of such shares to the holder. Please consult your personal tax advisor for specific tax advice.

Prevailing yields on similar securities will affect the market value of Series 1 shares and Series 2 shares. Assuming all other factors remain unchanged, the market value would be expected to decline as prevailing yields for similar securities rise and would be expected to increase as prevailing yields for similar securities decline. Spreads over the Government of Canada bond yield, T-Bill rate and comparable benchmark rates of interest for similar securities will also affect the market value in a similar manner.