Alterna Class A Investment Shares, Series 5

There’s no better investment.

Alterna’s Class A Investment Shares, Series 5 are a unique and exclusive investment opportunity for Alterna Savings Ontario Resident Members only. These shares are a low-risk investment that offer a great rate of return. Each share is worth one Canadian dollar ($1 CAD).

With 33 locations in Ontario, we offer a full range of financial products and services, all with a commitment to supporting the well-being of our members, employees and communities.

Since Alterna Savings is member-owned, our profits go right back into our operations so we can serve you and our communities better. It’s that simple, so you can feel good about investing in a financial institution that is 100% owned by its Members.

What’s unique about Alterna shares? Expand/Collapse

Alterna’s Class A Investment Shares, Series 5 are unique compared to common shares because:

  • You’ll be investing in a financial institution that is 100% owned by its Members – including you. You’ll need to become a member if you aren’t one already in order to be eligible to purchase the Class A Investment Shares, Series 5. It’s easy to become a member, as long as you’re an Ontario resident.

  • Income earned is taxed as interest on Class A Investment Shares, Series 5; whereas common shares income is normally taxed as dividends.

  • There is no secondary market (stock market) where Class A Investment Shares, Series 5 can be traded.

  • Class A Investment Shares, Series 5 will have a fixed redemption value, unlike common shares which are valued by many variables of the market

What is the minimum and/or maximum amount of shares Members can purchase? Expand/Collapse

  • Members are required to purchase a minimum of $1,000 (1,000 shares) and are limited to a maximum of $200,000 (200,000 shares).

Why are there multiple closing periods? Expand/Collapse

  • For Class A Investment Shares, Series 5, Alterna has decided to offer multiple closing periods during the six-month sales period allowing it to issue shares during each month rather than waiting until the end of the six months or until the target of 75 million shares is reached. Shares issued at the end of each month will be considered as capital, allowing Alterna to continue to grow.

  • There are no differences in terms and conditions of the shares being offered during different closing periods. All shares issued will be Class A Investment Shares, Series 5.

How long is the investment term? Expand/Collapse

  • Alterna’s Class A Series 5 Investment Shares do not have a defined term; if a Member does not wish to hold their Class A Series 5 Investment Shares any longer, they are limited to either redeeming or transferring their shares, subject to the following restrictions. The shares cannot be redeemed at the shareholder’s option until the fifth fiscal year following the fiscal year in which the shares were issued. Transfers of shares during this period are possible if Alterna Savings is able to find a buyer.

  • Members that wish to redeem their shares after the initial 5-year period from the date of issuance can only do so through a branch of Alterna. There is no secondary market for any of Alterna’s Class A Series 5 Investment Shares. Annual redemptions are limited to 10% of the amount of shares outstanding at the beginning of the year, and redemption requests above that limit will be carried forward to the following year. All redemptions and/or transfers must be approved by the Alterna Savings Board, subject to Applicable Law.

What is the dividend rate? Expand/Collapse

  • The minimum annual dividend rate is 4.00% for the first 5 years (if dividends are declared), prorated for the first year of issuance. The dividend rate is subject to change after the initial 5 years, as outlined within the Offering Statement.
  • For 2019 it was 4.00%. For a full list of historical dividend rates please refer here.

  • Dividends (taxed as interest) are not guaranteed to be declared annually and are non-cumulative (meaning if they are not paid in a year they do not carry over to the next year).

How are the dividends issued? Expand/Collapse

  • If declared, dividends are paid to the holder of the shares on the dividend payment date in the form of cash, or potentially shares.

Are shares eligible to be held within registered savings plans? Expand/Collapse

  • Yes, Alterna’s Class A Series 5 Investment Shares are eligible for Registered Retirement Savings Plans (RRSP), Tax Free Savings Accounts (TFSA), as well as non-registered.

Purchase Information

How can I purchase shares? Expand/Collapse

  • Visit a branch or call our Contact Centre (1.877.560.0100) to receive a copy of the Offering Statement, all purchases must occur in a branch of Alterna Savings. Members are obligated to read the Offering Statement before purchasing shares, as it is important they understand all of the risks, legalities and instructions regarding the shares before purchase. Alterna is legally obligated to provide an Offering Statement to Members before they purchase shares. Click here to view the Offering Statement online.

Who can purchase shares? Expand/Collapse

  • Alterna’s Class A Series 5 Investment Shares are available for purchase to individual Members (age 18 and over) that reside in the province of Ontario, as well as corporations and partnerships that are Members.

Who can become a Member of Alterna Savings? Expand/Collapse

  • Anyone who is a resident in the province of Ontario can become an Alterna Savings Member. There is no fee to join Alterna; however, you are required to hold subscribe for $15 worth Membership Shares. Membership entitles you access to all the services of the credit union, and full rights as an owner/shareholder. You can discontinue Membership at any time, at which point the Membership Shares will be redeemed and returned to you.
  • Minimum Dividend Rate of 4.0% annually from 2017 to 2022. Dividends not guaranteed.
  • Member must review offering statement for full details prior to purchase.