Mandatorily redeemable Series C preferred shares

APUC has 100 redeemable Series C preferred shares issued and outstanding. Thirty-six of the Series C preferred shares are owned by related parties controlled by executives of the Company. The preferred shares are mandatorily redeemable in 2031 for $53,400 per share (fifty-three thousand and four hundred dollars per share) and have a contractual cumulative cash dividend paid quarterly until the date of redemption based on a prescribed payment schedule indexed in proportion to the increase in CPI over the term of the shares. The Series C preferred shares are convertible into common shares at the option of the holder and the Company, at any time after May 20, 2031 and before June 19, 2031, at a conversion price of $53,400 per share.

As these shares are mandatorily redeemable for cash, they are classified as liabilities in the consolidated financial statements. The Series C preferred shares are accounted for under the effective interest method, resulting in accretion of interest expense over the term of the shares. Dividend payments are recorded as a reduction of the Series C preferred share carrying value.



Estimated dividend payments due in the next five years and dividend and redemption payments thereafter are:
2016	$	979
2017	908
2018	1,068
2019	1,282
2020	1,344
Thereafter to 2031	18,516
Redemption amount	5,340
	29,437
Less amounts representing interest	(10,910		)
	18,527
Less current portion	(979		)
	$	17,548