Dividend Reinvestment Plan and Stock Dividend Program
On February 8, 2017, ARC's Board of Directors approved the elimination of the Dividend Reinvestment Plan ("DRIP") and Stock Dividend Program ("SDP"). Elimination of the DRIP and SDP will be effective for the March 2017 dividend, payable on April 17, 2017 to shareholders of record on March 31, 2017. The ex-dividend date is March 29, 2017. Shareholders that were enrolled in either program will automatically receive dividend payments in the form of cash.
Prior to elimination, ARC offered the DRIP and SDP as optional plans for its shareholders. Shareholders were able to receive dividend payments in cash or reinvest their cash dividends into additional common shares of ARC pursuant to the DRIP. Alternatively, shareholders could elect to receive common shares of ARC in lieu of cash dividends pursuant to the SDP.
The following table outlines each of the three options previously available to ARC’s shareholders with respect to receipt of dividend payments.
|
| Cash
| DRIP
| SDP
|
| Participation (1)
| Default
| Optional
| Optional
|
| Eligibility
| All Shareholders
| U.S. citizens or residents are not eligible to participate in ARC's DRIP
| All Shareholders with the exception of residents in certain U.S. States
|
| Tax Treatment for Canadian Residents(2)
| Full amount of dividend is included in income in the year the cash dividend is received
| Full amount of reinvested dividend is included in income in the year the cash dividend is received and reinvested
| No material amount expected to be included in income in the year the stock dividend is received
May increase a capital gain (or decrease a capital loss) realized on a subsequent disposition of the common shares received
|
| Price and Fees(3)
| Monthly cash dividends issued at $0.05/share
No applicable fees
| Dividends reinvested at the five day weighted average trading price
No brokerage fees
| Shares issued at the five day weighted average trading price
No brokerage fees
|
| Enrollment
| Not applicable
| Full or Partial(4)
- Election required
| Full or Partial(4)
- Election required(5)
|
(1) On February 8, 2017, ARC's Board of Directors approved the elimination of the DRIP and SDP. Elimination of the DRIP and SDP will be effective for the March 2017 dividend, payable on April 17, 2017 to shareholders of record on March 31, 2017. The ex-dividend date is March 29, 2017. Shareholders that were enrolled in either program will automatically receive dividend payments in the form of cash.
(2) All shareholders are encouraged to consult their own tax advisors regarding the tax consequences to them of any of these options.
(3) Prior to July 31, 2014 effective discount rate was 5%. Rate changed to 3% effective August 29, 2014 record date. Discount was eliminated effective December 30, 2016 record date.
(4) Shareholders who participate in the SDP will not be able to participate in the DRIP; however, a shareholder is entitled to participate in the SDP or the DRIP with respect to a portion of their shares and to receive cash dividends with respect to the remainder of their shares.
(5) Beneficial Shareholders will need to contact their financial intermediary to determine whether they will be able to participate in the SDP.
