On March 31, 2021, 1.0 million Series C preferred shares automatically converted into Series B shares as a result of preferred shareholder conversion rights. The results of that conversion were press released on March 18, 2021. The Series B preferred shares pay dividends at a fixed annual rate of 3.73%.
Effective October 20, 2020, following the completion of the RGMP Transaction, the Board approved the resumption of the Company’s quarterly dividend on its preferred shares commencing with the payment of accrued but unpaid dividends of $0.2257 per Cumulative 5-Year Rate Reset Preferred Share, Series B, and $0.193803 per Cumulative Floating Rate Preferred Shares, Series C, payable on November 16, 2020, to preferred shareholders of record on October 30, 2020.
Previously, on July 30, 2020, the Board of Directors approved to temporarily suspend quarterly cash dividends on all classes of its preferred shares.
The Company’s net working capital as at June 30, 2020 was $122.8 million. While this level of liquidity is sufficient to pay dividends, under Section 38(3) of the Business Corporations Act (Ontario), the Company's governing corporate statute, the Company cannot pay a dividend if there are reasonable grounds for believing that the net realizable value of the Company’s assets would be less than the aggregate of its liabilities and its legal stated capital of all classes of shares (common and preferred) as at September 30, 2020, the date on which its quarterly preferred share dividend would normally be paid.
In the event that the payment date is not a business day, such dividend shall be paid on the next succeeding day that is a business day.