- Dividends will be paid in the form of shares to those shareholders who elect to participate in the SDP at 95% of the weighted average market price calculated 5 days before the payment date and all fees associated with the SDP will be paid by Enerplus.
- Participation in the SDP is not expected to generate dividend income for Canadian shareholders holding their shares in taxable accounts. Shares issued under the SDP will have a nominal cost for Canadian tax purposes and as a result, receipt of stock dividends under the SDP will effectively result in a downward adjustment to the shareholder's cost base and would be taxed as a capital gain or loss upon the eventual sale of the shares. In addition, Canadian shareholders participating in the SDP may also benefit if the tax rate on capital gains is lower than the tax rate on dividend income applicable to their individual circumstances.
- Non-Canadian shareholders holding Enerplus shares in a taxable account who elect to participate in the SDP are not expected to be subject to Canadian withholding taxes that typically range from 15% - 25% on dividends paid by Enerplus. Therefore the number of shares received under the SDP will reflect the entire amount of the stock dividend.
- Shareholders can elect to receive stock dividends on all or some of their shares.
- Shareholders with tax-deferred accounts are not expected to be impacted.
Enerplus Shareholders Approve Stock Dividend Program
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