Frequently Asked Questions
FAQ 1: Who is a Claimant?
A Claimant is someone who:
- purchased Eligible Beleave Shares, is not a defendant in the action, and not a person excluded from being a Class Member under paragraph 101 of the Notice of Civil Claim;
- has not opted out of the settlement and the action by requesting, in writing to Class Counsel, to be excluded from the settlement and the action; and
- submits a properly completed Claim including all required supporting documentation, though the Administrators’ electronic claims portal, by AUGUST 8, 2022.
FAQ 2: How much money will be distributed?
Currently, the exact amount has yet to be determined. The Court has approved the deduction from the settlement fund of $2.4 million of legal expenses, notice costs, and taxes of CDN $956,167 and a litigation holdback of CDN $240,000 for continuing claims. An additional amount will be deducted for the costs in administering the settlement. It is expected that this expense will be less than $50,000.
All expenses have been approved by the Court. The amount that remains after the deduction of those expenses and is available to be distributed to the Authorized Claimants (as defined in the Distribution Protocol) is called the “Net Settlement Fund”. The estimated Net Settlement fund will be approximately CDN $1.15 Million.
FAQ 3: How will the money be distributed?
The Distribution Protocol sets out the Court approved way of calculating the amount of money that each Claimant, if eligible, can receive from the Net Settlement Fund.
The first step in the Distribution Protocol is determining whether a Claimant suffered a Net Loss from their acquisition of Eligible Beleave Shares. To suffer a Net Loss, the money paid by the Claimant to acquire Eligible Beleave Shares (“Acquisition Expense”) must exceed the total proceeds paid to the Claimant on the sale, or deemed disposition, of those same shares (“Disposition Proceeds”).
A Claimant with a Net Loss becomes an Authorized Claimant and goes on to have their Notional Entitlement determined. The Notional Entitlement arising out of the purchase of Eligible Shares is calculated by reference to paragraph 23 of the Distribution Protocol and the Authorized Claimant’s trading particulars.
After each Authorized Claimant’s Notional Entitlement is determined, the Net Settlement Fund will be allocated to Authorized Claimants on a pro rata basis based upon each Authorized Claimant’s Notional Entitlement. What this means is that each Claimant will be entitled to a share of the Net Settlement Fund equal to their relative share of the total Notional Entitlements of all Authorized Claimants.
Authorized Claimants whose pro rata allocation is less than $30.00 will not be paid out because the cost to distribute these funds is expected to be greater than the amount to be distributed. Instead, those amounts will be allocated pro rata to Authorized Claimants whose pro rata allocation is greater than $30.00.