An anonymous director reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES CONVERSION RIGHTS FOR CUMULATIVE RATE RESET PREFERRED SHARES, SERIES A

Algonquin Power & Utilities Corp. does not intend to exercise its right to redeem all or part of the currently outstanding 4.8 million cumulative rate reset preferred shares, Series A, on Jan. 2, 2024. As a result, subject to certain conditions, the holders of the Series A preferred shares have the right to convert all or part of their Series A preferred shares, on a one-for-one basis, into cumulative floating rate preferred shares, Series B, on Jan. 2, 2024 (the conversion date).

The terms and conditions of the Series A preferred shares, including the right to convert, are described in the short form prospectus of the company dated Nov. 2, 2012, pursuant to which the Series A preferred shares were initially issued for an aggregate of $120-million (or $25 per Series A preferred share).

Holders of Series A preferred shares who do not exercise their right to convert their Series A preferred shares into Series B preferred shares on the conversion date will retain their Series A preferred shares.

The dividend rate applicable to the Series A preferred shares for the five-year period from and including Dec. 31, 2023, to but excluding Dec. 31, 2028, and the dividend rate applicable to the Series B preferred shares for the three-month period from and including Dec. 31, 2023, to but excluding March 31, 2024, will be determined and announced by the company by way of a news release on Dec. 4, 2023.

Beneficial owners of Series A preferred shares who wish to exercise their conversion right during the conversion period, which runs from Dec. 4, 2023, to Dec. 18, 2023, at 5 p.m. ET, should communicate as soon as possible with their broker or other nominee for more information. It is recommended that this be done well in advance of the deadline in order to provide the broker or other nominee time to complete the necessary steps. Any notices received after this deadline will not be valid.

The foregoing conversion rights are subject to the following conditions:

1. If Algonquin determines that there would be outstanding on the conversion date fewer than one million Series B preferred shares, after having taken into account all Series A preferred shares tendered for conversion into Series B preferred shares, then holders of Series A preferred shares will not be entitled to convert their Series A preferred shares into Series B preferred shares.
2. Alternatively, if Algonquin determines that there would remain outstanding on the conversion date fewer than one million Series A preferred shares, after having taken into account all Series A preferred shares tendered for conversion into Series B preferred shares, then all remaining Series A preferred shares will automatically be converted into Series B preferred shares without the consent of the holders of Series A preferred shares, on a one-for-one basis, on the conversion date.

In either case, Algonquin will give written notice to that effect to the registered holder of Series A preferred shares no later than Dec. 27, 2023.

About Algonquin Power & Utilities Corp.

Algonquin Power & Utilities, parent company of Liberty, is a diversified international generation, transmission and distribution utility with approximately $18-billion of total assets. Algonquin is committed to providing safe, secure, reliable, cost-effective and sustainable energy and water solutions through its portfolio of generation, transmission and distribution utility investments to over one million customer connections, largely in the United States and Canada. In addition, the company owns, operates and/or has net interests in over four gigawatts of installed renewable energy capacity.

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