Financial Statements and Notes - Canadian Oil Sands

a) Unitholders’ capital
A maximum of 500,000,000 Units have been created for issuance pursuant to the Trust Indenture.
The Units represent a beneficial interest in the Trust, share equally in all distributions from the Trust
and carry equal voting rights. No conversion, retraction or pre-emptive rights are attached to the Units.
Units are redeemable at the option of the Unitholder at a price that is the lesser of 90 per cent of
the average closing price of the Units on the principal trading market for the previous 10 trading days
and the closing market price on the date of tender for redemption, subject to restrictions on the amount
to be redeemed each quarter.
In February 2003, the Trust raised $756 million, $732 million net of issue costs, in new equity to finance
a significant portion of the $1.05 billion acquisition of the 10 per cent Working Interest in Syncrude
from EnCana. The equity issue was comprised of a public offering of 12.3 million Units for gross proceeds
of $431 million, and a private placement with a large U.S. institutional investor of 9.4 million Units
for gross proceeds of $325 million.
In July 2003, the Trust raised an additional $228 million, $220 million net of issue costs, in new equity
to support financing of the $430 million acquisition of the 3.75 per cent Working Interest in Syncrude
from EnCana. The equity issue was comprised of a public offering of 5.5 million Units for gross proceeds
of $193 million, and a private placement with a large Canadian bank of one million Units for gross
proceeds of $35 million.
In 2003, including public and private placement equity offerings and the Premium Distribution
Reinvestment and Optional Unit Purchase Plan (DRIP), 29.5 million Units with net proceeds of $1 billion
were issued (2002 – 0.9 million Units for net proceeds of $33 million). The following table summarizes
the Units that have been issued for cash proceeds:
Net Proceeds
Number
Date per Unit of Units Net Proceeds
Balance, January 1, 2002 56,779 $ 675,738
February 28, 2002 $ 36.28 168 $ 6,108
May 31, 2002 $ 39.12 262 $ 10,263
August 30, 2002 $ 36.88 258 $ 9,514
November 29, 2002 $ 33.52 217 $ 7,278
Balance, December 31, 2002 57,684 $ 708,901
February 28, 2003 $ 33.76 21,854 $ 737,855
May 29, 2003 $ 32.99 269 $ 8,880
July 3, 2003 $ 33.82 6,500 $ 219,841
August 29, 2003 $ 35.65 421 $ 15,013
November 28, 2003 $ 37.89 467 $ 17,693
Balance, December 31, 2003 87,195 $ 1,708,183
The Trust has a Unitholder Rights Plan (the Rights Plan) designed to provide the Trust and its Unitholders
with sufficient time to explore and develop alternatives for maximizing Unitholder value if a takeover
bid is made for the Trust. One right has been issued and attached to each Unit outstanding. Rights issued
under the Rights Plan become exercisable when a person, and any related parties, has acquired or begins
Canadian Oil Sands Trust Annual Report 2003