This offering statement must be delivered to every purchaser of the securities described herein prior to the purchaser becoming obligated to complete the purchase and, upon request, to any prospective purchasing member. No official of the Government of the Province of Ontario has considered the merits of the matters addressed in this offering statement. The securities being offered are not guaranteed by the Deposit Insurance Corporation of Ontario or any similar public agency. The prospective purchaser of these securities should carefully review the offering statement and any other documents it refers to, examine in particular the section on risk factors beginning on page 32 and, further, may wish to consult his/her financial and tax advisor about this investment. ALTERNA SAVINGS AND CREDIT UNION LIMITED OFFERING STATEMENT dated March 29, 2019 MINIMUM $500,000 -- MAXIMUM $50,000,000 CLASS A SPECIAL SHARES, SERIES 6 (NON-CUMULATIVE, NON-VOTING, NON-PARTICIPATING SPECIAL SHARES) (“CLASS A INVESTMENT SHARES, SERIES 6”) The subscription price for each Class A Investment Share, Series 6 will be $1.00 per share, with a minimum of 1,000 shares per member which may be subscribed for $1,000.00, to a maximum of 200,000 shares per member which may be subscribed for $200,000.00, irrespective of any Class A Investment Shares, Series 1 to Series 5, the member may already hold. There is no market through which these securities may be sold. The purchaser of these securities may reverse his/her decision to purchase the securities if he/she provides notice in writing, or by facsimile, or by e-mail in combination with a telephone call, to the person from whom the purchaser purchases the security, within two days, excluding weekends and holidays, of having signed a subscription form. The Class A Investment Shares, Series 6 are subject to the transfer and redemption restrictions under the Credit Unions and Caisses Populaires Act, 1994 and the restrictions under this offering statement as set out on page 24. THE SECURITIES OFFERED ARE NOT DEPOSITS. THE SECURITIES OFFERED ARE NOT INSURED. THE DIVIDENDS ON THE SECURITIES ARE NOT GUARANTEED. Aussi disponible en français TABLE OF CONTENTS OFFERING STATEMENT SUMMARY ..................................................................................................................... 1 Alterna Savings and Credit Union Limited ............................................................................................................... 1 The Offering .............................................................................................................................................................. 1 Dividend Policy ......................................................................................................................................................... 2 Use of Proceeds ......................................................................................................................................................... 3 Risk Factors ............................................................................................................................................................... 3 Summary Financial Information ................................................................................................................................ 3 GLOSSARY OF TERMS .............................................................................................................................................. 5 DETAILED OFFERING STATEMENT ...................................................................................................................... 9 A. GENERAL ............................................................................................................................................................ 9 The Credit Union ....................................................................................................................................................... 9 B. DESCRIPTION OF BUSINESS ............................................................................................................................. 10 Deposit Services .................................................................................................................................................. 10 Card Services ....................................................................................................................................................... 10 Lending Services ................................................................................................................................................. 10 Vision, Mission and Values Statement ................................................................................................................ 10 Bond of Association and Membership ................................................................................................................. 10 Corporate Governance ......................................................................................................................................... 11 Business Strategy ................................................................................................................................................. 12 Strategic Plan ....................................................................................................................................................... 12 Capital Plan ......................................................................................................................................................... 12 The Regulatory Framework ................................................................................................................................. 12 Central 1 Credit Union......................................................................................................................................... 13 Tier 1 and Tier 2 Regulatory Capital ................................................................................................................... 13 Capital Adequacy ................................................................................................................................................ 14 Additional Information ........................................................................................................................................ 14 C. CAPITAL STRUCTURE OF THE CREDIT UNION ............................................................................................ 14 Membership Shares ................................................................................................................................................. 14 Class A Investment Shares, Series 1 ........................................................................................................................ 15 Class A Investment Shares, Series 2 ........................................................................................................................ 16 Class A Investment Shares, Series 3 ........................................................................................................................ 17 Class A Investment Shares, Series 4 ........................................................................................................................ 18 Class A Investment Shares, Series 5 ........................................................................................................................ 18 Class B Shares, Series 1........................................................................................................................................... 19 Class B Shares, Series 2........................................................................................................................................... 20 Capital Structure of Alterna Savings’ Subsidiaries ..................................................................................................... 21 D. DESCRIPTION OF SECURITIES BEING OFFERED ......................................................................................... 21 Class A Investment Shares, Series 6 ........................................................................................................................ 21 Issue ..................................................................................................................................................................... 21 Dividends ............................................................................................................................................................. 22 Canadian Federal Income Tax Considerations .................................................................................................... 22 RRSP and TFSA-Eligible .................................................................................................................................... 23 Rights on Distributions of Capital ....................................................................................................................... 24 Voting Rights ....................................................................................................................................................... 24 Redemption Provisions and Restrictions ............................................................................................................. 24 Restrictions on Transfer ......................................................................................................................................