Meridian's Grow Your Tomorrow Class A Investment Shares – Series 17 are a unique and exciting investment opportunity. These shares are a low-risk investment in your financial future at a great rate.
Feel good about investing in a financial institution 100% owned by its Members. All of Meridian's profits are reinvested in delivering exceptional products and services for our Members and investing in the growth and development of our local communities. Each share is worth one Canadian dollar ($1 CAD).
The main differences between common shares and Meridian's Grow Your Tomorrow Class A Investment Shares are:
Subscriptions for the Grow Your Tomorrow Class A Shares are available to Members only – anyone living in Canada can easily become a Member.
Income earned on Grow Your Tomorrow Class A Investment Shares is taxed as interest vs income typically earned on common shares which is taxed as dividends.
There is no secondary market (stock market) where Grow Your Tomorrow Class A Investment Shares can be traded.
The confidence of knowing your Grow Your Tomorrow Class A Investment Shares will have a fixed redemption value, unlike common shares which are valued by the market based on many variables.
Members are required to purchase a minimum of $5,000 (5,000 shares) and are limited to a maximum of $2,000,000 (2,000,000 shares). Special rules apply for shares held jointly, or for shares held within a separate legal entity but beneficially owned by an individual.
Meridian's Grow Your Tomorrow Class A Investment Shares do not have a defined term; if a Member does not wish to hold their Grow Your Tomorrow Class A Investment Shares any longer, they are limited to either redeeming or transferring their shares. The shares cannot be redeemed for a period of 5 years following their issuance. Transfers of shares during this period are possible if Meridian is able to find a buyer.
Should the Member wish to redeem their shares after the initial 5-year period, they can only do so through a Meridian branch, as there is no secondary market for any of Meridian's Class A Investment Shares. Meridian will first attempt to facilitate a transfer by matching the seller with another 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 Meridian Board, subject to Applicable Law.
The Board of Directors has passed a resolution setting a minimum annual dividend rate of 4.25% 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, and each five years thereafter. Dividends (taxed as interest) are not guaranteed to be declared annually and are non-cumulative.
Yes, Grow Your Tomorrow Class A Investment Shares are eligible for Registered Retirement Savings Plans (RRSP), Registered Retirement Income Funds (RRIF) and Tax Free Savings Accounts (TFSA), as well as non-registered plans.
If declared, dividends are paid to the holder of the shares on the dividend payment date in the form of additional shares, cash or a combination of both. Payment is typically determined by the investor. However, the Board can mandate a specific type of payment (shares, cash or combination of both).
Grow Your Tomorrow Class A Investment Shares are not eligible for deposit insurance by the Deposit Insurance Corporation of Ontario (DICO).