1. Why is OMISTA offering these Preferred Shares?
2. What is the difference between OMISTA Preferred Shares and the Ownership Shares required to open an account with OMISTA?
3. How many Preferred Shares will OMISTA sell?
4. Do I have to pay for my Preferred Shares immediately?
5. Why can I only buy Preferred Shares by coming into the branch?
6. Can I purchase the maximum Preferred Share amount of $50 000 for each OMISTA account I hold?
7. What is the minimum number of Preferred Shares I may purchase?
8. Are Preferred Shares insured?

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1. Why is OMISTA offering these Preferred Shares?

All businesses require new capital from time to time to allow them to make the necessary investments to grow. Increasing our capital reserves will allow us to expand our facilities and services -- and will help OMISTA achieve our on-going goals of developing better services for owners and contributing to the communities in which we live and work. As a Credit Union, OMISTA doesn't look to outside investors for new capital, which would dilute our owners' equity. Instead, we are offering owners the opportunity to invest in a secure investment that contributes to the future growth of OMISTA, while earning a higher-than-market rate of return. 

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2. What is the difference between OMISTA Preferred Shares and the Ownership Shares required to open an account with OMISTA?

OMISTA requires that all owners hold Ownership Shares that entitle them to participate in the democratic process of the credit union and patronage rebate, as well as have access to our full range of competitive financial products and services.

Owners are not required to purchase Preferred Shares -- rather, they are an opportunity for owners to invest in the future growth of OMISTA while earning a higher-than-market rate of return. They are a good option for owners looking to diversify their investment portfolio. Unlike Ownership Shares, Preferred Shares are not voting shares for the annual Board of Directors election.

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3. How many Preferred Shares will OMISTA sell?

OMISTA is issuing 5 million Preferred Shares, at a cost of $1 each. We have determined that $5 million will be sufficient to meet the current growth objectives of the Credit Union. This investment pays a high dividend rate and was a special offer only. For this reason, we do not want to offer more than OMISTA requires.

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4. Do I have to pay for my Preferred Shares immediately?

Because this is a rare -- and attractive -- investment opportunity and there are only a limited number of shares available, we are advising owners to act quickly. We can only add your name to our Buyer’s Register upon receiving the proper signed documentation and funds for your purchase. We wish to reiterate, Shares are available on a first-come, first-serve basis and only actual purchase guarantees shares.

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5. Why can I only buy Preferred Shares by coming into the branch?

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6. Can I purchase the maximum Preferred Share amount of $50 000 for each OMISTA account I hold?

No – the $50 000 maximum for Preferred Shares applies to individual owners, not to accounts. So if you have three accounts, for example, the maximum amount you can purchase would still be $50 000. The maximum number of shares which may be purchased by one individual owner of the Credit Union shall be 50 000 Class A Preferred Shares.

The maximum number of shares which may be purchased by one business owner shall be 500 000 Class A Preferred Shares.

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7. What is the minimum number of Preferred Shares I may purchase?

The minimum number of Class A Preferred Shares which may be purchased by one owner is 1 000.

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8. Are Preferred Shares insured?

The New Brunswick Credit Union Deposit Insurance Corporation (NBCUDIC) does not cover OMISTA Preferred Shares. However, you should consider OMISTA’s financial record set out in the Disclosure Statement.

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