By conducting new wood trade, the validity period of Metsä1 additional shares is extended in proportion to the wood trade income you receive, up to a maximum of 20 years. In other words, every euro* you receive in wood trade income from Metsäliitto Cooperative automatically extends the validity of one of your Metsä1 additional shares by ten years from the current end of its validity period. The date of conversion of the same Metsä1 additional share may be postponed several times, but never in the case of an individual postponement more than 20 years from the end of the calendar year during which the wood trade income serving as the basis for the postponement was received.
The period of notice for Metsä1 and Metsä2 additional shares is six months as of the end of the year of termination. The termination of Metsä1 and Metsä2 additional shares cannot be rescinded.
However, as specified in the Rules of Metsäliitto Cooperative, the Board of Directors of Metsäliitto Cooperative has the right to defer payment of the refund should this place the cooperative’s solvency or capital adequacy at risk. Metsäliitto Cooperative also has the right to redeem all or part of Metsä1 and/or Metsä2 additional shares.
* Rounded down to the nearest full euro for each individual payment and excluding the applicable amount of VAT or similar taxes and fees, as well as withholding tax.
Example of the investment of wood trade income in Metsä1 additional shares and the extension of their validity with wood trade
In a hypothetical example, a member makes an investment of EUR 10,000 from their wood trade income in Metsä1 additional shares in 2022. In 2024, the member receives EUR 7,000 of wood trade income and invests this income in new Metsä1 additional shares.
The wood trade income in 2024 automatically extends the validity of the Metsä1 additional shares previously acquired in 2022 for a portion equivalent to EUR 7,000, which is 7,000 Metsä1 additional shares.
After the extension of the validity period, the conversion of 7,000 of the Metsä1 additional shares acquired in 2022 into Metsä2 additional shares is postponed to the end of 2042, while the other 3,000 additional shares will be converted at the end of the original validity period in 2032.
The 7,000 Metsä1 additional shares acquired in 2024 will be converted into Metsä2 additional shares after 2034, because their validity period has not been extended with wood trade.
The owner-member can also reinvest the interest on their capital they receive in additional shares. Each reinvestment of interest in Metsä1 additional shares will have its own validity period of 10 years, after which they will be converted into Metsä2 additional shares if their validity period has not been extended with wood trade.
The period of notice for Metsä1 and Metsä2 additional shares is six months from the end of the year of termination. As specified in the Rules of Metsäliitto Cooperative, the Board of Directors has the right to defer payment of the refund should this place the cooperative’s solvency or capital adequacy at risk.
A member considering investment should carefully read the Rules of Metsäliitto Cooperative, and the issuance terms and prospectus of the Metsä1 and Metsä2 additional shares for more detailed information on the new additional shares and their risk statements. More information and the aforementioned documents can be found here (in Finnish).