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Deferring your redemption right

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Deferral (conversion) for 2018

  • Defer your redemption right by 7 years to receive a Quebec tax credit worth 10% of the deferred amounts
  • Opt to defer up to $15,000 for shares held for at least 7 years
  • Defer redemption by simply converting your shares into a new class of shares
  • No new investment required and no other tax consequences at the time of deferral

Read the press release

Is this option open to you?

In order to qualify for this offer and enjoy the tax credit, you must:

  • Be a shareholder of CRCD
  • Hold shares eligible for deferral by February 28, 2019, that is, shares that have been held for at least 7 years
  • Not have redeemed CRCD shares in the past
  • Be willing to hold your converted shares for an additional 7-year period

Conversion process

Shareholders interested in this new provision may opt to defer their right to redeem their eligible shares, that is, shares they have held for at least seven years, through a simple share conversion.

If demand for conversion exceeds the authorized amount of $100 million, CRCD will proceed as it does for subscriptions with a random selection process involving all shareholders who indicated their interest between 9 a.m. on June 18 and 5 p.m. on September 24, 2018.

All shareholders who meet the eligibility criteria will receive a communication by mail before the end of June requesting that those interested provide consent by mail or online.

Main features

  • Available to existing CRCD shareholders who have held shares for at least 7 years and have never requested redemption
  • Option to defer the 7-year redemption right of the shares by simple conversion into a new class of shares
  • Seven-year minimum holding period for the converted shares
  • Minimum annual conversion of $500 to a maximum of $15,000 of the value of the shares at the time of conversion
  • Quebec tax credit worth 10% of the value of the converted shares that is non-refundable and cannot be carried forward from year to year
  • Not eligible for RRSPs, RRIFs or any other deferred tax plan (LIRA, LIF)
  • Return not guaranteed
  • No tax consequences at the time of conversion, potential capital gain or loss on redemption