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The Distribution Reinvestment and Unit Purchase Plan (the Plan)
adopted by Medical Facilities Corporation (the Company)
permits eligible investors (Participants) to enrol in
the Plan and have all distributions they receive from their IPS
units used to purchase additional IPS units of the Company (Plan
Units). Consult the DRIP
Plan for the complete text.
DRIP Documents
DRIP
Plan
DRIP
Form
DRIP FAQ
The following are common questions and answers concerning the Plan.
Please note that the answers provided are in summary form only and
more detailed and complete information is available from the Plan
itself.
1. What is the Plan?
The Plan allows the Companys unitholders resident in Canada
to automatically reinvest cash distributions paid on their units
in additional units.
Unitholders who do not enrol their units in the Plan will continue
to receive distributions in the usual manner.
The Plan is administered by Computershare Investor Services Inc.
(the Agent or Computershare), which acts
as agent for all Participants.
2. What are some of the advantages of participating
in the Plan?
The Plan offers the Companys unitholders a cost-effective
means to purchase the Companys units through the reinvestment
of distributions on a regular basis and in a convenient manner.
Participants in the Plan will dollar cost-average their unit purchases
by reinvesting distributions under the Plan on a regular monthly
basis.
3. Who may participate in the Plan?
The company uses a certificateless book-entry only
securities registration system in which all of the outstanding Units
are held through the Canadian Depository for Securities (CDS)
instead of being registered in the names of the beneficial Unitholders.
As a result, Beneficial Unitholders may not directly enroll in the
Plan through the company or the Plan Agent, but must enroll in the
Plan via their CDS Participant.
Any holder of units in the Company (a Unitholder) who
is a resident of Canada may enroll in the Plan at anytime. Unitholders
who are resident outside of Canada are not permitted to participate
in the Plan.
4. How does a Unitholder become a Participant
in the Plan?
Beneficial Holders may participate in the Plan by (i) advising
their CDS Participant of their desire to participate in the Plan
and directing them to take all necessary actions to permit participation
in the Plan; and (ii) completing
Form A Certificate of Beneficial Ownership and returning
it to the Company.
5. When does participation in the Plan start
once a Unitholder has taken the necessary steps to become a Participant
and how is the Plan administered?
The rules of CDS dictate the timing of commencement in the Plan
for Beneficial Holders. Such rules govern when CDS Participants
must provide notice to CDS with respect to Beneficial Holders
participation in the Plan. Generally, in order for participation
to be effective for a given distribution, such advice must be communicated
no later than 4:00 p.m. (Toronto time) on the fifth (5th) Business
Day immediately preceding the Distribution Record Date (or such
other deadline your broker/financial institution may set from time
to time in respect of such distribution).
6. How does a Participant terminate participation
in the Plan?
A Beneficial Holder may terminate participation at any time by
providing written notice to his or her CDS Participant. The CDS
Participant will then give notice to CDS in accordance with the
rules and regulations of CDS. A Beneficial Holder who has terminated
participation in the Plan will be credited with any Plan Units held
for the Participants account in accordance with the operating
policies of such CDS Participant.
7. How will Units be purchased for Participants
under the Plan?
Cash distributions payable on units enrolled in the Plan will be
aggregated and then used by the Agent, after deduction of applicable
fees, to purchase units on the open market through the Toronto Stock
Exchange.
8. When will Units be Purchased for Participants?
For distribution reinvestment, units purchased under the Plan will
be purchased on the Toronto Stock Exchange during the four (4) business
days following the relevant distribution payment date (if insufficient
units are available for purchase during such period surplus funds
will be returned to unitholders). Historically, the Company has
paid distributions on its units on the 15th day (or the following
business day if the 15th day is not a business day) of each month.
The declaration of distributions and corresponding distribution
record and payment dates are determined by the Companys Board
of Directors in its sole discretion.
9. What is the price of the Units under the
Plan?
Plan Units are purchased on the Toronto Stock Exchange through
a broker-dealer designated by the Agent. The price of the Units
shall be the average of the price paid (excluding brokerage commissions,
fees and all transaction costs) per Unit (the Average Purchase
Price) for all of the Units purchase by the Agent in respect
of the Plan on the Toronto Stock Exchange during the four (4) business
days following the relevant distribution date preceding the purchase
of Plan Units.
Plan Participants (CDS) will only receive the number of whole Units
to which they are entitled and a cash payment equal to any fractional
Plan Units to which it would be entitled multiplied by the Average
Purchase Price.
10. What kind of statements will I receive if
I participate in the Plan?
As a Beneficial Unitholder participating in the Plan, you will
receive information regarding reinvestment of distributions from
your intermediary in accordance with your intermediarys administrative
practices.
11. Can the Company amend, suspend or terminate
the Plan?
The Company reserves the right to amend, suspend or terminate the
Plan at any time, subject to the approval of the Toronto Stock Exchange,
but such action shall have no retroactive effect that would prejudice
the interest of Participants. All Participants will be sent written
notice of any such amendment, suspension or termination. The Company,
in conjunction with Computershare, may also from time to time adopt
rules and regulations to facilitate the administration of the Plan.
12. What are the income tax consequences of
the Plan?
Participants are urged to consult their tax advisors as to their
particular tax position.
13. Who should be contacted for additional information
about the Plan?
Should you have any additional questions or require additional
information about the Plan, please contact:
Computershare Investor Services Inc.
510 Burrard Street, 2nd Floor
Vancouver, British Columbia
V6C 3B9
Phone: (604) 661 9400
Fax: (604) 661 9549
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