Part IV – Other Requirements (i) Distributions/Dividends Issuers declaring a dividend or distribution, including year-end distributions, on listed securities must notify TSX and follow the procedures outlined below. WHAT NEEDS TO BE FILED? For cash dividends and non-cash dividends (with the exception of notional distributions as set out below), a Form 5 must be filed via TMX LINX. Issuers are required to provide the following information in the Form 5: • The exact amount of the dividend per security. Where the exact amount of the distribution is unknown, Issuers should provide their best estimate of the anticipated amount of the distribution and indicate that such amount is an estimate. Upon determination of the exact amount of any estimated distribution, Issuers must disseminate the final details by press release and file an amended Form 5 with the updated amount to TSX via TMX LINX; and • Details regarding the payment of the distribution in cash, units and/or other securities (with the exception of notional distributions as noted below). WHEN DOES IT NEED TO BE FILED? Form 5 must be filed five trading days prior to the record date. WHY FIVE TRADING DAYS? TSX must have sufficient time to inform its Participating Organizations and the financial community of the details of each dividend declared. There must be a clear understanding in the marketplace as to who is entitled to receive the dividend declared. Due to practical considerations, such as holidays and weekends, TSX requires adequate notice in advance of the dividend record date. WHAT IS EX-DIVIDEND TRADING? Determining whether a seller or buyer of listed securities is entitled to a dividend that has been declared by an Issuer is accomplished through the procedure known as “ex-dividend trading”. When securities trade ex-dividend, the seller retains the right to a pending dividend payment, and the opening bid quotation is usually reduced by the value of the dividend payable. Currently, since two trading days are required for the settlement of a securities transaction, the securities will commence trading on an ex-dividend basis at the opening of trading on the date which is one trading day prior to the record date for the dividend. For example, if the record date for a dividend is Friday, the securities will commence trading on an ex-dividend basis at the opening of trading on the preceding Thursday (in the absence of statutory holidays). Effective May 27, 2024, the settlement cycles in the Canadian securities industries are being shortened from trade date plus two business days (“T+2”) to trade date plus one business day (“T+1”). The change to a T+1 settlement cycle will result in ex-dates for dividends to change from one business day prior to the record date to the day of the record date. Please see Staff Notice 2024-0003. 14
RkJQdWJsaXNoZXIy MjgzMzQ=