How DropLoss Works
The DropLoss system asks you a series of questions to identify the nature and quantity of the securities you want to sell for a loss. We then use this information to generate a package of investment sale and transfer documents ("Transfer Document Package") that allow you to sell the investment to us. The Transfer Document Package includes representations and warranties that we qualify to purchase the investment under applicable securities laws.
The cost of using DropLoss to prepare a Document Transfer Package is CAD$199.99 + GST, and we offer to purchase all securities for an aggregate purchase price of CAD$10.00, which is automatically deducted from your invoice at the time of purchase as a "set-off" payment. This means you won't receive a cheque or other payment from us, but are receiving a discount on the document generation services instead so the total expense is $189.99 + GST.
If you sign the Transfer Agreement Documents, we review them to ensure that there are no known prohibitions to our purchase of it. Although very rare, we can't purchase certain investments if prohibited by applicable laws. Once approved, a signed copy is returned to you at the email address you provided as your record of transfer.
DropLoss may contact the investment issuer to have their books and records updated, but we can't guarantee that they will do this. In many cases, the issuer can no longer be found or is otherwise unresponsive. Some issuers also have transfer restrictions that may not allow for the investment sale even if it does qualify under applicable laws, and may not update their records. It's your responsibility to make sure that the Transfer Agreement Documents are sufficient. Speak to your accountant and financial advisors to ensure that the Transfer Agreement Documents are sufficient for your purposes.
We can't provide you with a copy of our documents without you using the system, but we recognize that you may want to take a deeper dive into what you get by using DropLoss. Download a sample transfer package, below.