TORONTO, Jan. 12, 2017 /CNW/ - Home Capital Group
Inc. (TSX: HCG) ("Home Capital" or the "Company") is pleased to
announce it has implemented a Dividend Reinvestment Plan ("DRIP").
The DRIP will offer shareholders an opportunity to increase
their investment in Home Capital by receiving dividend payments in
the form of common shares ("Shares") of the Company without paying
additional transaction costs, broker commissions, administrative
costs or other service charges.
Shares available for the reinvestment of dividends may, at the
discretion of the Company, be issued from treasury or be purchased
on the open market at the applicable best efforts open market
purchase price, all of which will be publicly announced by the
Company. Shares issued from treasury may be at a discount of
up to 5% of the average market price and the discount will be
determined by the Company. The average market price for treasury
purchases is defined in the DRIP as the volume weighted
average price of Shares traded on the Toronto Stock Exchange for
the five trading days immediately preceding the relevant Dividend
Payment Date.
Participation in the DRIP is optional and will not affect
shareholders' cash dividends unless they elect to participate in
the DRIP. Participants in the DRIP plan may obtain additional
Shares of the Company by automatically reinvesting the cash
dividends paid on Shares held by the DRIP plan participant.
Shareholders can choose the number of Shares they would like to
have enrolled in the DRIP.
Participation in the DRIP is open to all registered and
beneficial shareholders in Canada. Shareholders that are
resident in jurisdictions other than Canada are not eligible to participate in the
DRIP at this time. Dividends are only payable as and when declared
by Home Capital's Board of Directors and there is no entitlement to
any dividend prior thereto.
Investors who hold Shares through a broker or other financial
institution ("nominee") and wish to participate in the DRIP must
enroll in the DRIP through their respective nominee agent. The
administrative practices of nominees may vary and affect the manner
in which shareholders can participate in the DRIP. Also, the
various dates by which actions must be taken by shareholders as set
out in the DRIP may differ from the dates required by the
nominee.
Eligible shareholders who hold their Shares in their name may
enroll online through Computershare Trust Company of Canada's self-service web portal at
www.investorcentre.com, or by completing and delivering an
enrollment form in accordance with the DRIP not less than five
business days before a dividend record date.
The full text of the DRIP will be mailed to registered
shareholders in the near future and is available on the Company's
website, together with a detailed Q&A and enrollment form, at
www.homecapital.com/ir_dividends.asp. Shareholders should carefully
read the complete text of the DRIP and consult their financial
advisors about potential tax implications before making any
decisions regarding their participation in the DRIP. Dividends
reinvested under the DRIP are designated as "eligible" dividends
for the purposes of the Income Tax Act (Canada) and any similar provincial
legislation.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto
Stock Exchange (HCG), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust
company offering residential and non-residential mortgage lending,
securitization of insured residential first mortgage products,
consumer lending and credit card services. In addition, Home Trust
offers deposits via brokers and financial planners, and through its
direct to consumer deposit brand, Oaken Financial. Home Trust also
conducts business through its wholly owned subsidiary, Home Bank.
Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the
meaning of applicable Canadian securities legislation. Please refer
to the Home Capital's 2015 Annual Report, available on Home
Capital's website at www.homecapital.com, and on the Canadian
Securities Administrators' website at www.sedar.com, for Home
Capital's Caution Regarding Forward-looking Statements.
SOURCE Home Capital Group Inc.