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FirstService announces stock dividend of 7% cumulative preference shares, series 1
FirstService announces stock dividend of 7% cumulative preference shares, series 1.
About this update from Firstservice Corp
[{"type":"text","content":"\n\n\n\nInnovative new yield instrument provides shareholders with one preferred\n\n\nshare for every five outstanding common shares\n\n\nTORONTO, June 25 /CNW/ - FirstService Corporation (TSX: FSV; NASDAQ:\nFSRV) ("FirstService") announced today that it is undertaking an initiative to\nenhance shareholder value through a special distribution of 7% cumulative\npreference shares, series 1 (the "Preferred Shares") to all holders of its\nsubordinate voting shares and multiple voting shares.\n\n\n"The issuance of the Preferred Shares will allow the holders of\nsubordinate voting and multiple voting shares to retain the high-growth\nattributes they expect from FirstService while providing an attractive\nafter-tax yield instrument to those shareholders wishing to receive\ndividends," said Jay S. Hennick, Founder and Chief Executive Officer. "We\nbelieve it is in the best interests of our shareholders to allow them to\ndecide for themselves how they wish to participate in our future growth.\nShareholders can elect to retain both instruments and have the best of both\nworlds, or they have the option to sell one or the other, as they deem\nappropriate, to achieve their goals. We expect the Preferred Shares to compare\nfavourably to others in the market and to be an attractive investment to the\nlarge and growing numbers of yield-oriented investors."\n\n\nThe Board of Directors of FirstService has declared a stock dividend of\none Preferred Share for every five outstanding subordinate voting shares or\nmultiple voting shares of FirstService. No fractional Preferred Shares will be\nissued. The stock dividend will be payable on August 1, 2007 to shareholders\nof record at the close of business on July 25, 2007.\n\n\nEach Preferred Share is non-voting, has a stated value of US$25.00,\ncarries a fixed cumulative annual dividend of US$1.75 payable quarterly and is\nredeemable for cash or subordinate voting shares of FirstService at the option\nof FirstService. A summary of the attributes of the Preferred Shares is\nannexed hereto as Schedule "A". An application will be made to the Toronto\nStock Exchange to list the Preferred Shares and the issuance and listing of\nthe Preferred Shares remains subject to the approval of the Toronto Stock\nExchange. The Preferred Shares are expected to trade in ...