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Costco CDR (CAD Hedged)
Symbol COST
Shares Issued 7,250,000
Close 2025-02-03 C$ 46.41
Market Cap C$ 336,472,500
Recent Sedar Documents

Costco CDR (CAD Hedged) to trade on TSX

2025-02-03 19:29 ET - New Listing

The Toronto Stock Exchange reports that it has approved the original listing of Canadian depositary receipts (CDRs) issued by Canadian Imperial Bank of Commerce. According to the TSX, Costco CDR (CAD Hedged) will be listed and posted for trading on the TSX at the open on Feb. 5, 2025. There will be 7.25 million CDRs issued and outstanding, and 50,000 CDRs reserved for issuance. The CDRs will trade under the symbol COST, in Canadian dollars and with Cusip No. 22170M 10 9. The designated market-maker is CIBC World Markets Inc., and the transfer agent and registrar is TSX Trust Company at its principal office in Toronto.

The TSX reports that the CDRs are securities that represent a beneficial ownership interest in a pool of shares of common stock of Costco Wholesale Corp. The underlying shares are listed on the Nasdaq Global Select Market under symbol COST. The CDRs are designed to provide Canadian investors with a fractional ownership interest in the underlying shares in Canadian dollars with a currency hedge. The CDRs have been listed on Cboe Canada since Dec. 1, 2021, under the symbol COST.

Each CDR is equivalent to owning a fractional interest in the underlying shares. This is represented by the CDR ratio. The CDR ratio is adjusted on a daily basis to provide a notional currency hedge. As the ratio increases or decreases, the number of underlying shares represented by one CDR increases or decreases. So, if the Canadian dollar strengthens, the CDR will represent a larger number of underlying shares. Conversely, if the Canadian dollar weakens, the CDR will represent a smaller number of underlying shares.

For example, if on a given day a CDR holder owns 100 CDRs and the CDR ratio is 0.10 on that day, then the CDR holder's interest in the pool provides entitlements that are based on the entitlements that would arise from beneficially owning 10 of the applicable underlying shares with a notional hedge into Canadian dollars of the market value in the applicable foreign currency in which such underlying shares are listed for trading on their principal securities exchange or other trading market. The CDR ratio for each series of CDRs will be calculated daily and will be available at the CDR website under the CDR directory tab.

The TSX notes that CDR investors will be entitled to vote the underlying shares through CIBC's on-line voting portal. CIBC Mellon Trust Company, as the depositary, will then vote the underlying shares in accordance with the instructions provided on a commercially reasonable best-efforts basis. The number of underlying shares that each CDR holder can vote will depend on how many CDRs they hold and how many underlying shares each CDR reflects.

Dividends paid on the underlying shares will be passed through to CDR investors in Canadian dollars when received by the depositary. The record date for determining which CDR holders are entitled to receive any dividends in respect of CDRs will be the record date set by the relevant underlying issuer. The depositary will notify CDR holders of any record dates via the CDR website under the corporate actions tab.

The deposit agreement sets out the terms of CDR holders' undivided co-ownership interests in the pool of underlying shares held for the relevant series of CDRs. Each CDR represents an equal undivided direct beneficial interest in the underlying share pool. CDR holders do not have any ownership interest in any particular underlying shares or number or fraction thereof, and CDR holders will not be considered to be shareholders of the underlying issuer for the purposes of Canadian or U.S. securities laws.

For more information, see CIBC's short form base shelf prospectus dated Aug. 15, 2023, as amended by amendment No. 1, dated May 24, 2024, and amendment No. 2, dated Jan. 23, 2025, and prospectus supplement No. 1 dated Aug. 15, 2023, which are available on SEDAR+. Reference should be made to the deposit agreement dated as of July 16, 2021 (as amended), and amended and restated with effect as of May 28, 2024, among CIBC and CIBC Mellon, as the custodian, for the complete attributes of the CDRs.

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