Product Description
The Deposit Notes provide a return at the 8.5-year term maturity that is linked to the price performance of a Reference Portfolio composed of the
common shares of 20 Canadian companies.
On the Maturity Payment Date, Holders will be entitled to receive, in respect of each Deposit Note held, repayment of their Initial Deposit Amount. In
addition, if the Reference Portfolio Return at maturity is positive, Holders will be entitled to receive a Variable Return equal to the product of $100 and
the Reference Portfolio Return. If the Reference Portfolio Return is negative or nil at maturity, no Variable Return will be paid.
The Reference Portfolio Return is the arithmetic average of the Reference Share Returns of the 20 Reference Shares over the period starting on the
Issuance Date of the Deposit Notes and ending on the Valuation Date. The return of each Reference Share, will be that of the Reference Share’s
percentage gain or loss measured from its closing price on the Issuance Date to its closing price on the Valuation Date.
Note
On April 4, 2023, Rogers Communications Inc. – Class B (TSX: RCI/B) (“Rogers”) completed its merger with Shaw Communications Inc. – Class B (TSX: SJR/B) (“Shaw”). Accordingly, Shaw’s shares were delisted from the Toronto Stock Exchange. This event triggered an Extraordinary Non Replacement Event in connection with the Reference Portfolio of the Deposit Notes as per the terms and conditions of the Information Statement. As such, we hereby advise the Holders of the Deposit Notes that the common shares of Shaw have been deleted from the Reference Portfolio such that the Reference Portfolio Return will be calculated on the basis of the remaining Reference Shares, where the weighting of Shaw’s common shares will be reallocated proportionally to the common shares of Rogers, in accordance with the terms and conditions of the Information Statement. As such, the Initial Value of the common shares of Rogers was adjusted as of the closing of the markets on April 4, 2023.
On January 4, 2021, Husky Energy Inc. (TSX: HSE) (‘’Husky’’) closed its transaction pursuant to which it has become a wholly-owned subsidiary of Cenovus Energy Inc. (TSX: CVE) (‘’Cenovus’’), triggering a Substitution Event as per the terms of the Deposit Notes. As such, we hereby advise the Holders of the Deposit Notes that, as of the closing of the markets on January 5, 2021, the common shares of Husky have been replaced by the common shares of Cenovus as a Reference Asset in the Reference Portfolio of the Deposit Notes in accordance with the terms and conditions of the Information Statement. As a result, all calculations in respect of the Reference Portfolio Return that were based on the price of the common shares of Husky are, from January 6, 2021 until the Maturity Date, based on the price of the common shares of Cenovus. On January 24, 2020, Encana Corporation (TSX: ECA) (Encana) announced the completion of its reorganization, including the company rebranding under the name Ovintiv Inc. and the establishment of its corporate domicile in the United-States (NYSE : OVV). This event triggered a Substitution Event in connection with the Reference Portfolio of the Deposit Notes as per the terms and conditions of the Information Statement relating to the Deposit Notes. As such, we hereby advise the Holders of the Deposit Notes that, as of the closing of the markets on January 24, 2020, the common shares of Encana have been replaced by the common shares of Canadian Natural Resources Limited (TSX: CNQ) as a Reference Share in the Reference Portfolio of the Deposit Notes, in accordance with the terms and conditions of the Information Statement. As a result, all calculations in respect of the Reference Portfolio Return that were based on the price of the common shares of Encana are, from this date until maturity, based on the price of the common shares of Canadian Natural Resources Limited.