New Issues and Initial Public Offerings (IPOs)

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1 Lorem ipsum dolor Sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et dolore magna gubergren, no sea takimata sanctus est Lorem ipsum dolor sit amet. New Issues and Initial Public Offerings (IPOs) New Issues and IPOs Explained New issues are offerings of securities from a company going public for the first time. Initial Public Offerings, or IPOs, are the most commonly known new issues.

2 Initial Public Offering An IPO is a company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. What are New Issues and Initial Public Offerings New Issues and IPOs Explained New issues are offerings of securities from a company going public for the first time. Initial Public Offerings, or IPOs, are the most commonly known new issues. An IPO is a company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept very large risks for the possibility of large gains. IPO's by investment companies (closed end funds) usually contain underwriting fees which represent a load to buyers. New Issues can also include a Secondary Offering, which involves the additional sales of securities of companies that have already gone public. Common Questions How Do I Find Out About New Issue Offerings at Scotia itrade? If you are a Scotia itrade client, you can find information on the New Issues we offer by logging onto the website trading platform. Once logged on, go to the Trade tab and then click on the New Issue Offerings sub tab for a list of current and completed issues. What is an 'Expression of Interest'? An expression of interest is an order to buy a specific number of securities of a new issue. Based on available inventory, an expression of interest may get a full allocation, partial allocation or, in rare cases, no allocation. How are New Issues Allocated? Generally speaking, new issues are allocated on a first-come, first-served basis. However, other approved allocation methods may be used. For example, if we believe a popular offering will be highly oversubscribed, we reserve the right to build a book of orders (expressions of interest) and allocate securities on a pro-rated basis. Does Scotia itrade offer U.S. IPOs & New Issues? The simple answer is no. U.S. underwriters typically do not file the documentation required to market an issue in Canada. Unless the prospectus is filed in Canada, no Canadian brokerage will have access to the IPO or New Issue. What Commission is Charged When Purchasing or Selling IPOs & New Issues? We charge $0 commission on all purchases. However, standard commission is charged on all sells. 2 New Issues and IPOs Scotia itrade

3 An indication of interest (IOI) signifies your firm order to purchase a specific number of shares in an IPO or New Issue. What is an Indication of Interest? An indication of interest (IOI) signifies your firm order to purchase a specific number of shares in an IPO or New Issue. By placing your indication of interest, you agree to purchase the specified number of shares, subject to any applicable securities regulations. Will I Get Filled on my Full Indication of Interest? Indications of interest for IPOs & New Issues are accepted on a first come, first serve basis. Because the demand for securities may exceed the supply available to distribute, placing an indication of interest does not guarantee an allocation of securities. When you place an indication of interest, you must be willing to accept a full fill, partial fill or no fill on your order. However, our goal is to fill your entire indication of interest. Once the allocation is complete, a confirmation will be sent to you with your order details. To participate in the allocation process, you must have sufficient buying power in your account when you place your order. Can I Amend, Reduce or Cancel My Indication of Interest? Yes, you have up to two (2) business days once your indication of interest has been placed, subject to any applicable securities regulations, to reduce your order by any amount; instructions will not be accepted. To amend, reduce or cancel your order, contact Scotia itrade at option 4. What is a Bought Deal? In securities underwriting, this is a firm commitment by an underwriter or underwriting group to purchase an entire issue outright from the issuing company. Then, all members of the underwriting group resell the issue to individual and institutional investors at a preset price. What is a Marketed Deal? In this type of underwriting, there is no commitment made by an underwriter or underwriting group to purchase the issue outright from the issuing company. The issue is typically marketed over a period of several days or weeks to potential investors on a best efforts basis by the underwriters. What are New Issue Alerts? New issue alerts provide notification when IPOs & New Issues are available at Scotia itrade. It is important to keep your brokerage address up to date, so that we can send you important information and updates about New Issues, and the indication of interest that you place. How Do I Sign Up to Receive New Issue Alerts? To sign up for Scotia itrade IPO & New Issue alerts, simply visit your Brokerage Alerts. 3 New Issues and IPOs Scotia itrade

4 Express Interest in a New Issue If you are a Scotia itrade client, you can express an interest in a New Issue by logging onto the website trading platform. Once logged on, go to the Trade tab, and then click on the New Issues tab to place an expression of interest for a specific issue. Please note, only one expression of interest is permitted per issue, per account. Once you click on Buy you will be redirected to the trade ticket. 4 New Issues and IPOs Scotia itrade

5 Invest in New Issues Our Scotia itrade participates in hundreds of IPOs & New Issues annually covering a vast array of industry sectors. We offer a wide range of preferred shares, common shares, trust units, limited partnership units, convertible debentures and more. Like many investment choices, IPOs & New Issues provide diversification, the potential to provide a high return and their purchases are commission-free. IPOs & New Issues are time sensitive and the details of the offering are subject to change without prior notice. To ensure that you are notified of the latest IPOs & New Issues offerings, sign up to receive New Issue alerts by logging on to your Scotia itrade account and visiting our IPOs & New Issues Centre. Select Account Select New Issues Select Symbol from drop-down if not populated from previous page Order Type is always set to indication of interest Enter Quantity Enter Price Type (always Market for New Issues) Click Preview Order. Check your order carefully before inserting your Access Code and submitting your order 5 New Issues and IPOs Scotia itrade

6 Are New Issues Marginable? Yes. New issues are given loan value in the same manner as any other security that can be held with us based on Scotia itrade and regulatory policies. For margin information regarding a specific New Issue, please contact our Scotia itrade New Issues desk at , Monday to Friday, between the hours of 8:30 a.m. EST and 4:30 p.m. EST. What Does the 'Settlement Date' of a New Issue Mean? The settlement date refers to the date that you, the buyer, legally become the owner of the security. Unlike most North American stock exchanges, where settlement dates of 3 business days are common, a New Issue purchase settlement date will often occur several weeks or more after the offering is first launched. For bought deals, it is common for the settlement date to occur 1-3 weeks after the offering is announced. For marketed deals, it is common for the settlement date to occur 1-2 months after the deal is launched. The reason for the lengthier timeline is all issuers that have filed to come to the market with a New Issue Offering must clear several regulatory steps and file a final prospectus with the regulators before the deal can be settled. What Does 'Contracted' Mean? "Contracted" refers to booking the New Issue purchase into your trading account. This can only be done once the final prospectus has been filed by the issuer and accepted by the regulators. Once an issue is contracted to your account, you will receive an official order confirmation receipt and a physical copy of the final prospectus mailed to your address. How Will I be Notified that the Shares Have Been Allocated? Once you have been allocated shares, you will be sent a confirmation . The status of allocations can also be viewed by logging onto the website trading platform. Click on the "Trade" tab and then the "View Orders" tab. Please note that prior to the settlement date of a New Issue, we will use a temporary symbol that is 6-12 characters long to identify the order as a New Issue order. This temporary symbol will be changed to the actual symbol of the security no later than the settlement date of the issue. If you're looking for more general information about New Issues, visit our New Issues page. Learn more. To learn more about New Issues and IPOs, join our Webinars or view our Webinars on Demand. 6 New Issues and IPOs Scotia itrade

7 Mailing address Scotia itrade PO Box 4002 Station A Toronto, ON M5W 0G4 Investor Information Centre 48 Yonge Street (Yonge/Wellington) Toronto, ON, M5E 1G6 Tel: [email protected] Scotia itrade (Order-Execution Only Accounts) is a division of Scotia Capital Inc. ("SCI"). SCI is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Scotia itrade does not provide investment advice or recommendations and investors are responsible for their own investment decisions. Registered trademark of The Bank of Nova Scotia. Used under license. Scotia itrade All Rights Reserved.