TORONTO, Oct. 5, 2021 /CNW/ - Equitable Group Inc. (TSX:
EQB) (TSX: EQB.PR.C), (the "Company") is pleased to announce that
the resolution placed in front of shareholders at the special
meeting held earlier today, which was to amend the articles of the
Company to effect a two-for-one share split, has been passed (the
"Share Split"). The Share Split received 99.99 percent approval.
Final voting results on all matters voted on at the special meeting
will be filed on SEDAR (www.sedar.com).
After consideration, the Company's board of directors has
decided to proceed with the two-for-one Share Split, and the
Company will proceed to file articles of amendment under the
Business Corporations Act (Ontario) to effect the Share Split.
The Share Split will be implemented by way of a subdivision
whereby shareholders receive one additional share for each share
held. The Share Split will not impact a shareholder's proportionate
interest in the Company. All future dividends declared by the
Company will reflect the Share Split.
"We are pleased that both our shareholders and our board have
approved the share split," said Chadwick
Westlake, Chief Financial Officer of the Company.
"This encourages greater market liquidity and wider distribution of
our common shares among a broader investor base."
Shareholders of record as of the close of business on
October 15, 2021 (the "Record Date")
will receive from Computershare Investor Services Inc.
("Computershare"), the Company's registrar and transfer agent, on
October 25, 2021 (the "Payment Date")
one additional common share for every one common share held. As at
the close of markets on October 5,
2021, the Company had 17,014,633 common shares issued and
outstanding. Adjusting for the Share Split, as of October 5, there would have been 34,029,266
common shares issued and outstanding.
Shares of the Company will begin trading with "due bills" on the
Toronto Stock Exchange (the "TSX") at the opening of business on
October 14, 2021 (which is one
trading day prior to the Record Date) until October 25, 2021 (which is the Payment Date),
inclusively (the "Due Bill Period"). A due bill is an entitlement
attached to a listed security undergoing a material corporate
action, which includes the Share Split. During the Due Bill Period
anyone who purchases shares of the Company on the TSX will receive
an entitlement to be issued additional shares pursuant to the Share
Split. Shares will commence trading on an "ex-distribution"
(post-split) basis on the TSX at the opening of business on
October, 26, 2021, as of which date purchases of common shares will
no longer have the attaching entitlement to the additional common
shares. The due bill redemption date will be October 27, 2021.
No action is required by shareholders. Existing share
certificates representing shares of the Company will remain
effective. They should be retained by shareholders and should not
be forwarded to the Company or Computershare. On October 25, 2021 the additional shares required
to give effect to the Share Split will be issued to holders of
record at the close of business on October
15, 2021. On or about October 25,
2021, Computershare will mail certificates representing the
additional shares issued to registered shareholders as a result of
the Stock Split. In addition, Computershare will electronically
issue the appropriate number of common shares to CDS Clearing and
Depositary Services Inc. for distribution to non-registered
(beneficial) shareholders. Non-registered (beneficial) shareholders
who hold their common shares in an account with their investment
dealer or other intermediary will have their accounts automatically
updated to reflect the Share Split in accordance with the
applicable brokerage account providers' usual procedures.
The share split is not expected to result in taxable income or
in any gain or loss to shareholders for Canadian federal income tax
purposes. Shareholders are advised to consult with their own tax
advisors for further information. The Share Split will not dilute
shareholders' equity and there will be no change to the interest,
rights or privileges of common shares. All share and per share data
for future periods will reflect the Share Split. The Company's
equity-based compensation plans as well as its normal course issuer
bid will be adjusted to reflect the Share Split.
About Equitable
Equitable Group Inc. ("Equitable") trades on the Toronto Stock
Exchange (TSX: EQB and EQB.PR.C) and serves nearly three hundred
thousand Canadians through its wholly-owned subsidiary Equitable
Bank, Canada's Challenger Bank™.
Equitable Bank (the "Bank") has grown to become the country's
eighth largest independent Schedule I bank with a clear mandate to
drive real change in Canadian banking to enrich people's lives.
Founded over 50 years ago, Equitable Bank provides diversified
personal and commercial banking and through its EQ Bank platform
(eqbank.ca) has been named #1 Bank in Canada on the Forbes World's Best Banks 2021
list. Please visit equitablebank.ca for details.
Cautionary Note Regarding Forward-Looking Statements
Statements made by in the sections of this news release, in
other filings with Canadian securities regulators and in other
communications include forward-looking statements within the
meaning of applicable securities laws (forward-looking statements).
These statements include, but are not limited to, statements about
Equitable and the Bank's objectives, strategies and initiatives,
financial performance expectations and other statements made
herein, including statements made by Equitable's CFO, whether with
respect to Equitable's businesses or the Canadian economy.
In particular, this news release contains forward-looking
information relating to the timing and the anticipated impact
of a two-for-one Share Split on our common shares and future
dividend payments.
Generally, forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "planned",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
which state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved", or
other similar expressions of future or conditional verbs.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, closing of transactions, performance or
achievements of Equitable or the Bank to be materially different
from those expressed or implied by such forward-looking statements,
including but not limited to risks associated with capital markets
and additional funding requirements, fluctuating interest rates and
general economic conditions, legislative and regulatory
developments, changes in accounting standards, the nature of our
customers and rates of default, and competition as well as those
factors discussed under the heading "Risk Management" in the
MD&A and in Equitable's documents filed on SEDAR at
www.sedar.com. All material assumptions used in making
forward-looking statements are based on management's knowledge of
current business conditions and expectations of future business
conditions and trends, including their knowledge of the current
credit, interest rate and liquidity conditions affecting Equitable
and the Canadian economy. Although Equitable believes the
assumptions used to make such statements are reasonable at this
time and has attempted to identify in its continuous disclosure
documents important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. Certain material assumptions
are applied by Equitable in making forward-looking statements,
including without limitation, assumptions regarding its continued
ability to fund its mortgage business, a continuation of the
current level of economic uncertainty that affects real estate
market conditions, continued acceptance of its products in the
marketplace, as well as no material changes in its operating cost
structure and the current tax regime. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Equitable does not
undertake to update any forward-looking statements that are
contained herein, except in accordance with applicable securities
laws.
SOURCE Equitable Group Inc.