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Alterna Class A Investment Shares, Series 6
Alterna’s Class A Investment Shares, Series 6 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).
Feel good about investing in a financial institution 100% owned by its Members. All of Alterna’s profits are reinvested in delivering exceptional products and services for our Members and investing in the growth and development of our local communities.
How are these shares different from other stocks or common shares?
The main differences between common shares and Alterna’s Class A Investment Shares, Series 6 are:
- Subscriptions for the Class A Investment Shares, Series 6 are available to Ontario Resident Members only – anyone can easily become a Member.
- Income earned on Non-Registered Class A Investment Shares, Series 6 is taxed as interest vs. income typically earned on common shares which is taxed as dividends.
- There is no secondary market (stock market) where Class A Investment Shares, Series 6 can be traded.
- The confidence of knowing your Class A Investment Shares, Series 6 will have a fixed redemption value, unlike common shares which are valued by the market based on many variables.
Is there a minimum and/or maximum amount of shares Members can purchase?
- 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) total, including shares held jointly. Rules apply for shares held jointly, or for shares held within a separate legal entity but beneficially owned by an individual.
How long is the investment term?
- The shares cannot be redeemed until 5 years from earlier of September 27, 2019 or on the date Alterna’s Capital needs are met. Transfers of shares during this period are possible if Alterna Savings is able to find a buyer. Alterna’s Class A Series 6 Investment Shares do not have a defined term; if a Member does not wish to hold their Class A Series 6 Investment Shares any longer, they are limited to either redeeming or transferring their shares.
- Should the Member wish to redeem their shares after the initial 5-year period from the date of issuance, they can only do so through an Alterna branch, as there is no secondary market for any of Alterna’s Class A series 6 Investment Shares. Alterna Savings will first attempt to facilitate a transfer by matching the seller with a buyer and, if no buyer can be found, then the shares will be redeemed. 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?
- 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.
Are shares eligible as registered products?
- Yes, Alterna’s Class A Series 6 Investment Shares are eligible for Registered Retirement Savings Plans (RRSP), Tax Free Savings Accounts (TFSA), as well as non-registered plans.
How are the dividends issued?
- If declared, dividends are paid to the holder of the shares on the dividend payment date in the form of cash.
Still have questions?
For more information, please speak to an Alterna representative at our Contact Centre, visit any Alterna Savings branch, or email us. We'd be glad to help.
Declaration of dividends is not guaranteed. Dividends are non-cumulative. Only members may purchase Class A Investment Shares, Series 6.
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