Demand for shares of Capital régional et coopératif Desjardins
has once again outstripped the $135 million issue limit
As a result, investors who can purchase shares were selected at random
this morning from among those who completed the online form
Montréal, October 2, 2017 - "The continued interest in Capital régional et coopératif Desjardins (CRCD) shares is great news for our SMEs. We'll be able to forge ahead in our work to value and nurture Québec entrepreneurship with our portfolio of some 430 flagship Québec companies, including over 140 in the resource regions."
Luc Ménard, Chief Operating Officer of Desjardins Business Capital régional et coopératif, welcomed the results of the presubscription requests for CRCD shares that were made between September 5 and 25. All in all, shares in an amount of $161,666,400 were spoken for by 55,306 Québec investors, for an average of $2,923 per shareholder.
Demand for shares $26.7 million above the limit authorized by the Québec government
Demand for shares outstripped the 2017 authorized limit by $26.7 million, whereas it exceeded the 2016 authorized limit by approximately $9.4 million. The Québec government has authorized CRCD to issue $135 million in shares annually for 2016 and 2017 and set the provincial tax credit rate at 40%.
46,154 investors selected at random
In accordance with the terms of the offering prospectus approved by the Autorité des marchés financiers, investors who can purchase shares were selected at random at 8:30 a.m. today from among those who completed the secure online form. The selection was supervised by the Desjardins Group Monitoring Office. The probability of being selected at random was the same for all investors.
The 46,154 investors selected at random will be offered an appointment at their chosen caisse between October 10, 2017 and November 24, 2017 to make a formal application for subscription and verify if the product is suited to their situation. Appointments are not transferable, meaning that investors cannot offer their appointment to another individual, such as their spouse. The lists of investors selected will be communicated to the caisses during the next few days. Investors who were not selected will be informed by letter or email starting on October 10.
If any selected investors do not complete a share purchase, the next investors on today's randomly established list will be contacted as of December 4, 2017 until the authorized issue limit is fully reached.
Driving the growth of SMEs and cooperatives across Québec
During the first six months of 2017, new commitments of $110 million were authorized by CRCD and its partner funds in 62 companies and cooperatives, including 26 located in resource regions.
About Capital régional et coopératif Desjardins
With more than 101,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,811 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Business Capital régional et coopératif. 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 over 430 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain 68,800 jobs. (www.capitalregional.com)