Viterra has announced a way for small shareholders to get rid of their shares through a charity program.
Shares typically trade in lots of 100 or more.
But Colleen Vancha, senior vice-president of investor relations and corporate affairs, said nearly 40,000 former Saskatchewan Wheat Pool co-operative members have fewer than 99 shares each.
Many of them have just three, which they received when the co-operative became a corporation. The $25 membership share was converted to three SWP shares and subsequently three Viterra shares.
“There’s no way for them to dispose of them,” she said of the small, odd lots of shares. “The brokerage fees to sell shares (are) probably more than the shares are worth.”
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Viterra has offered odd lot programs in the past, where shareholders could buy shares to bring them up to the 100 and then have a block eligible for sale.
However, the new charity program would see the shareholders donate their shares to Telemiracle.
“We’ll pay the brokerage fee. If they can’t find their certificate, we’ll pay for the lost certificate,” Vancha said.
“We’ll also donate up to $100,000 of our own money to the charity as well.”
The shareholders will receive a charitable tax donation receipt.
Vancha said Telemiracle was a good fit because it’s a well-known, Saskatchewan based charity that many shareholders have likely supported in the past.
She said she saw a similar program offered in Europe but believes this is the first partnership of this type in North America.
Viterra will send information to shareholders with its next dividend payments at the end of this month. Shareholders who want to participate will have to sign a form and mail it back in a postage-paid envelope.
The benefits are three-fold: the charity receives extra donations, the shareholders can divest themselves of their shares without any costs and Viterra saves the ongoing costs of sending annual report and financial statements to shareholders with little interest in the company.
Vancha also said many of these small lots are now parts of estates, so the program can also help families.
Shareholders are not required to divest and those who choose not to participate in the program will still receive the company’s financial information.
The program runs until Jan. 31. A cheque will be presented to Telemiracle in March.
For more information, call 877- 477-1538.
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