CWBFG Annual Report 2021

16. CAPITAL STOCK AUTHORIZED

• An unlimited number of common shares without nominal or par value; • 33,964,324 class A shares without nominal or par value; and, • An unlimited number of first preferred shares, without nominal or par value, issuable in series, provided that the maximum aggregate consideration for all outstanding first preferred shares at any time does not exceed $1,000,000.

ISSUED AND FULLY PAID

2021

2020

Number of Shares

Number of Shares

Amount

Amount

Preferred Shares - Series 5 Outstanding at beginning and end of year

5,000,000

$

125,000

5,000,000 $

125,000

Preferred Shares - Series 7 Outstanding at beginning of year

5,600,000

140,000

5,600,000

140,000

(5,600,000)

(140,000)

-

-

Redeemed

Outstanding at end of year

-

-

5,600,000

140,000

Preferred Shares - Series 9 Outstanding at beginning and end of year

5,000,000

125,000

5,000,000

125,000

Outstanding at End of Year – Preferred Shares

10,000,000

250,000

15,600,000

390,000

Limited Recourse Capital Notes - Series 1 (1) Outstanding at beginning of year

175,000

175,000

-

-

Issued

-

-

175,000

175,000

Outstanding at end of year

175,000

175,000

175,000

175,000

Limited Recourse Capital Notes - Series 2 (2) Outstanding at beginning of year

-

-

- -

- -

Issued

150,000

150,000

Outstanding at end of year

150,000

150,000

-

-

Outstanding at End of Year – Limited Recourse Capital Notes

325,000

325,000

175,000

175,000

Common Shares Outstanding at beginning of year

87,099,831

730,846

87,249,711

731,970

Issued under at-the-market common equity distribution program

2,052,600

72,969

-

- -

Issued under dividend reinvestment plan

117,000 120,904

4,064 1,556

-

Issued on exercise or exchange of options (3)

29,296

379

Purchased for cancellation

-

-

(179,176)

(1,503)

Outstanding at end of year – Common Shares

89,390,335

809,435

87,099,831

730,846

Share Capital

$

1,384,435

$

1,295,846

(1) In connection with the issuance of LRCN Series 1, on October 30, 2020, we issued $175,000 of First Preferred Shares Series 11 at a price of $1,000 per Series 11 Preferred Share. The Series 11 Preferred Shares were issued to a Limited Recourse Trust to be held as trust assets in connection with the LRCN structure. The Series 11 Preferred Shares and corresponding Trust investment are eliminated on consolidation. (2) In connection with the issuance of LRCN Series 2, on March 25, 2021, we issued $150,000 of First Preferred Shares Series 12 at a price of $1,000 per Series 12 Preferred Share. The Series 12 Preferred Shares were issued to a Limited Recourse Trust to be held as trust assets in connection with the LRCN structure. The Series 12 Preferred Shares and corresponding Trust investment are eliminated on consolidation. (3) Represents shares issued and amounts transferred from the share-based payment reserve to share capital upon cashless settlement of options exercised.

We are prohibited by the Bank Act from declaring any dividends on common shares when we are or would be placed, as a result of the declaration, in contravention of the capital adequacy and liquidity regulations or any regulatory directives issued under the Bank Act. This limitation does not restrict the current level of dividends.

A) At-the-market (ATM) Common Equity Distribution Program On May 31, 2021, we established an ATM program that allows us to incrementally issue up to $150,000 of common shares, at our discretion, at the prevailing market price. The ATM program was established under a prospectus supplement to the CWB short-form base shelf prospectus, and expires on November 9, 2022. During the year, we issued 2,052,600 common shares at an average price of $35.55 per share for gross proceeds of $72,969, or net proceeds of $71,353 after sales commissions and other issuance costs.

CWB Financial Group 2021 Annual Report | 97

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