Equity and dividends

3 Months Ended

Mar. 31, 2022

Equity and dividends

Equity and dividends

19.    Equity and dividends

Share capital

Common stock

Unlimited number of common shares, without par value.

Preferred stock

Unlimited number of senior preferred shares, without par value, issuable in series.

Unlimited number of junior preferred shares, without par value, issuable in series.

All issued shares are fully paid. No preferred shares have been issued.

Shares issued for business combinations

The Company has issued the following common shares in connection with the acquisitions of Rouse and SmartEquip. These shares were issued to certain previous unitholders and shareholders of Rouse and SmartEquip, based on the fair market value of the Company’s common shares at the acquisition date. The Company records share-based continuing employment costs in acquisition-related costs over the vesting period, with an increase to additional paid-in capital. The vesting of shares issued for business combinations is subject to continuing employment with the Company over various dates over a three year period from their respective acquisition dates. As and when the common shares vest, the Company will recognize the fair value of the issued common shares from additional paid-in capital to share capital.

19.    Equity and dividends (continued)

Shares issued for business combinations (continued)

	Rouse			SmartEquip			Total
								Weighted average
	Common	Fair value		Common	Fair value		Common	fair value
	shares	per common		shares	per common		shares	per common
	issued	shares		issued	shares		issued	shares
Outstanding, December 31, 2021	189,665	$	71.09	63,971	$	68.39	253,636	$	70.41
Granted	—		—	—		—	—		—
Vested	—		—	—		—	—		—
Forfeited	—		—	—		—	—		—
Outstanding, March 31, 2022	189,665	$	71.09	63,971	$	68.39	253,636	$	70.41
Outstanding, December 31, 2020	312,193	$	71.09	—	$	—	312,193	$	71.09
Granted	—		—	—		—	—		—
Vested	—		—	—		—	—		—
Forfeited	(55,510)		71.09	—		—	(55,510)		71.09
Outstanding, March 31, 2021	256,683	$	71.09	—	$	—	256,683	$	71.09

As at March 31, 2022, the unrecognized share-based continuing employment cost was $8,600,026 (2021: $14,576,000), which is expected to be recognized over a weighted average period of 1.5 years.

Share repurchase

There were no common shares repurchased during the three months ended March 31, 2022 (three months ended March 31, 2021: nil).

Dividends

Declared and paid

The Company declared and paid the following dividends during the three months ended March 31, 2022 and 2021:

		Dividend			Total
	Declaration date	per share		Record date	dividends		Payment date
Fourth quarter 2021	January 21, 2022	$	0.2500	February 11, 2022	$	27,659	March 4, 2022
Fourth quarter 2020	January 22, 2021	$	0.2200	February 12, 2021	$	24,181	March 5, 2021

Declared and undistributed

Subsequent to March 31, 2022, the Company’s Board of Directors declared a quarterly dividend of $0.25 cents per common share, payable on June 17, 2022 to stockholders of record on May 27, 2022. This dividend payable has not been recognized as a liability in the financial statements. The payment of this dividend will not have any tax consequences for the Company.

Foreign currency translation reserve

Foreign currency translation adjustments within other comprehensive income include intra-entity foreign currency transactions that are of a long-term investment nature, which generated a net loss of $884,000 for the three months ended March 31, 2022 (2021: net loss of $3,654,000).