Algonquin Power & Utilities Corp. – Consolidated Financial Statements ALGONQUIN POWER & UTILITIES CORP.  Notes to the Consolidated Financial Statements  December 31, 2012 and 2011   (in thousands of Canadian dollars except as noted and amounts per share)  14. Shareholders’ capital (i) Public offering  (ii) Conversion and redemption of convertible debentures Authorized 2012 Annual Report 112 (a) Common shares  Number of common shares:  APUC is authorized to issue an unlimited number of common shares. The holders of the common  shares are entitled to dividends if, as and when declared by the Board of Directors (the Board); to  one vote per share at meetings of the holders of common shares; and upon liquidation, dissolution or  winding up of APUC to receive pro rata the remaining property and assets of APUC; subject to the  rights of any shares having priority over the common shares, of which none are authorized or  outstanding . On June 23, 2010, the Company’s shareholders adopted a shareholders’ rights plan (the “Rights  Plan”). The Rights Plan has an initial term of three years. Under the Rights Plan, one right is  issued with each issued share of the Company. The rights remain attached to the shares and are  not exercisable or separable unless one or more certain specified events occur. If a person or  group acting in concert acquires 20 percent or more of the outstanding shares (subject to certain  exceptions) of the Company, the rights will entitle the holders thereof (other than the acquiring  person or group) to purchase shares at a 50 percent discount from the then current market price. The rights provided under the Rights Plan are not triggered by any person making a “Permitted  Bid”, as defined in the Rights Plan.  APUC is authorized to issue an unlimited number of preferred shares, issuable in one or more  series, containing terms and conditions as approved by the Board of Directors of APUC.  In 2011, the Company issued 16,869,000 common shares at $5.65 per share pursuant to a  public offering for proceeds of $95,310, net of issuance costs of $4,162. In 2011, the remaining principal amount of $62,470 of Series 1A Debentures were redeemed  for 15,219,641 common shares of APUC. In 2012, the remaining principal amount of $59,957 (2011 - $10) of Series 2A Debentures were  redeemed for 10,322,518 (2011 – 1,666) common shares of APUC. In 2012, $61,611 (2011 - $334) of Series 3 Debentures were redeemed for 14,669,266 (2011 –  79,517) shares of APUC. Subsequent to year-end, the remaining principal amount of $960  Series 3 Debentures were redeemed for 150,816 common shares of APUC.  2012 2011 Common shares, beginning of period  136,122,780  95,422,778 Public offering (i)  -  16,869,000 Conversion and redemption of convertible debentures (ii)  24,991,784  15,300,824 Conversion of subscription receipts (iii)  26,380,750  8,523,000 Issuance of shares under the dividend reinvestment and  employee share purchase plans (iv) and (c(ii))  1,268,172  7,178 Common shares, end of period  188,763,486  136,122,780