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Emerita Resources Corp. Capital/Financing Update 2021

Jul 22, 2021

46631_rns_2021-07-22_adfea463-d85c-43c6-a1f6-5181a92f7df8.pdf

Capital/Financing Update

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==> picture [56 x 51] intentionally omitted <==

CIBC CANADIAN BANKS INDEX (AR) AUTOCALLABLE COUPON BUFFER NOTES, SERIES 112

Principal At Risk Notes – Due August 8, 2028

Dated July 22, 2021

A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

Linked to Solactive Canada Bank 0.27% Monthly Contingent Coupon Monthly Autocall Feature (starting Variable Buffered Downside 30 AR Index Payments (3.24% per annum) in February 2022) Protection

Investment Highlights

Currency

CAD denominated.

Reference Index

Solactive Canada Bank 30 AR Index. The Reference Index is an adjusted return index that aims to track the gross total return performance of the Solactive Canada Bank TR Index (the “Target Index”), subject to a reduction of a synthetic dividend of 30 index points per annum calculated daily in arrears on a 360 day basis at the time the Reference Index is calculated (the “Adjusted Return Factor”).

Cash Flow

The Notes offer the opportunity to obtain monthly Coupon Payments equal to the Coupon Amount of $0.27 per Note if the Reference Index Return on the immediately preceding Valuation Date is greater than or equal to -40.00%.

Call Feature

The Notes will be automatically called by CIBC on a Call Date if the Reference Index Return on the Valuation Date immediately preceding such Call Date is greater than or equal to 10.00%.

Variable Buffered Downside Protection

If the Notes are not automatically called by CIBC and if the Reference Index Return at maturity is negative, the Notes provide principal protection at maturity if the Reference Index Return is greater than or equal to -40.00% on the final Valuation Date. If, however, the Reference Index Return is less than -40.00% on the final Valuation Date, the Variable Amount will be equal to the product of (i) the Reference Index Return plus 40.00%; and (ii) 166.66% (which will be negative in these circumstances and will result in a loss of a portion of the Principal Amount at maturity), subject to a minimum Maturity Amount of $1.00 per Note.

Term
Available Until
Issue Date
Maturity Date
(if not called)
Minimum Investment
How to Buy
Term
Available Until
Issue Date
Maturity Date
(if not called)
Minimum Investment
How to Buy
Term
Available Until
Issue Date
Maturity Date
(if not called)
Minimum Investment
How to Buy
7 years
July 29, 2021
August 5, 2021
August 8, 2028
$5,000
Wood Gundy: SyndNET
Third party: Fundserv CBL12295


Distribution groups 1
British Columbia:
877 858-9332
Ontario:
866 474-4166
Distribution groups 2
Prairies:
866 391-8633
Québec:
855 847-6696
Distribution groups 3
Atlantic Canada:
888 847-6407
Fundserv Client Services:
866 474-0142

The performance of the Reference Index reflects the gross total return performance of the Target Index as reduced by the Adjusted Return Factor. Investors will not have any right to receive any dividends or other distributions on any securities included in the Target Index. The annual dividend yield of the securities included in the Target Index was 3.70% for the 12 months ended July 14, 2021, which would represent aggregate dividends of 25.90% over the seven year term of the Notes, assuming the dividend yield remains consistent and the dividends are not reinvested.

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 1

Hypothetical Examples

The following hypothetical examples show how the Coupon Payments and the Maturity Amount would be calculated under three different scenarios. The Reference Index Return will be calculated based on the performance of the Reference Index, which reflects the gross total return performance of the Target Index as reduced by the Adjusted Return Factor. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Index at any time during the term of the Notes or the return that may be paid on the Notes. The actual performance of the Reference Index will be different from these hypothetical examples and the differences may be material.

Hypothetical Scenario #1 with no Coupon Payments payable and the Notes are not called prior to maturity

In this hypothetical scenario, the Reference Index Return was less than -40.00% on each Valuation Date. Accordingly, the Notes were not automatically called by CIBC prior to maturity and Investors would not be entitled to receive a Coupon Payment on any of the Coupon Payment Dates. The Variable Amount at maturity will be -$10.00 per Note, calculated as the product of $100.00 x (-46.00% + 40.00%) x 166.66%, as the Reference Index Return is less than -40.00% on the final Valuation Date. In this example the total cumulative return is -10.00% (which is equal to an annual compounded return of -1.49%).

Monthly Valuation Date Reference Index Return Coupon Payment
1 -44.00% $0.00
2 -49.00% $0.00
3 -44.00% $0.00
4 -43.00% $0.00
5 -44.00% $0.00
6 -52.00% $0.00
7 -53.00% $0.00
8 -57.00% $0.00
9 -55.00% $0.00
10 -44.00% $0.00
11 -47.00% $0.00
12 -49.00% $0.00
13 -48.00% $0.00
14 -48.00% $0.00
15 -47.00% $0.00
16 -59.00% $0.00
17 -49.00% $0.00
18 -51.00% $0.00
19 -54.00% $0.00
20 -52.00% $0.00
21 -59.00% $0.00
22 -57.00% $0.00
23 -59.00% $0.00
24 -55.00% $0.00

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 2

Monthly Valuation Date Reference Index Return Coupon Payment
25 -45.00% $0.00
26 -58.00% $0.00
27 -45.00% $0.00
28 -49.00% $0.00
29 -51.00% $0.00
30 -45.00% $0.00
31 -47.00% $0.00
32 -49.00% $0.00
33 -56.00% $0.00
34 -56.00% $0.00
35 -52.00% $0.00
36 -52.00% $0.00
37 -46.00% $0.00
38 -47.00% $0.00
39 -45.00% $0.00
40 -50.00% $0.00
41 -47.00% $0.00
42 -46.00% $0.00
43 -50.00% $0.00
44 -45.00% $0.00
45 -54.00% $0.00
46 -48.00% $0.00
47 -55.00% $0.00
48 -56.00% $0.00
49 -44.00% $0.00
50 -51.00% $0.00
51 -44.00% $0.00
52 -58.00% $0.00
53 -49.00% $0.00
54 -51.00% $0.00
55 -43.00% $0.00
56 -44.00% $0.00
57 -59.00% $0.00
58 -55.00% $0.00
59 -43.00% $0.00
60 -51.00% $0.00
61 -48.00% $0.00
62 -48.00% $0.00

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 3

Monthly Valuation Date Reference Index Return Coupon Payment
63 -54.00% $0.00
64 -58.00% $0.00
65 -48.00% $0.00
66 -55.00% $0.00
67 -57.00% $0.00
68 -49.00% $0.00
69 -54.00% $0.00
70 -52.00% $0.00
71 -54.00% $0.00
72 -53.00% $0.00
73 -50.00% $0.00
74 -51.00% $0.00
75 -51.00% $0.00
76 -45.00% $0.00
77 -59.00% $0.00
78 -60.00% $0.00
79 -60.00% $0.00
80 -60.00% $0.00
81 -45.00% $0.00
82 -56.00% $0.00
83 -43.00% $0.00
84 -46.00% $0.00

Total Coupon Payments: $0.00 Variable Amount: $100.00 x (-46.00% + 40.00%) x 166.66% = -$10.00 Maturity Amount: $90.00 Annual Compounded Return: -1.49%

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 4

Hypothetical Scenario #2 with Coupon Payments payable on forty-three Coupon Payment Dates and the Notes are not called prior to maturity

In this hypothetical scenario, the Reference Index Return was below 10.00% on each Valuation Date and the Reference Index Return was less than -40.00% on forty-one Valuation Dates. Accordingly, the Notes were not automatically called by CIBC prior to maturity and Investors would be entitled to receive Coupon Payments on forty-three Coupon Payment Dates (aggregate Coupon Payments of $11.61 over the term of the Notes). The Variable Amount at maturity will be the product of $100.00 x 0.00%, as the Reference Index Return was greater than or equal to -40.00% on the final Valuation Date. In this example the total cumulative return is 11.61% (which is equal to an annual compounded return of 1.58%).

Monthly Valuation Date Reference Index Return Coupon Payment
1 -41.00% $0.00
2 -41.00% $0.00
3 -47.00% $0.00
4 -50.00% $0.00
5 -47.00% $0.00
6 -41.00% $0.00
7 -41.00% $0.00
8 -50.00% $0.00
9 -46.00% $0.00
10 -43.00% $0.00
11 -41.00% $0.00
12 -44.00% $0.00
13 -49.00% $0.00
14 -44.00% $0.00
15 -41.00% $0.00
16 -48.00% $0.00
17 -44.00% $0.00
18 -41.00% $0.00
19 -49.00% $0.00
20 -42.00% $0.00
21 -41.00% $0.00
22 -49.00% $0.00
23 -42.00% $0.00
24 -49.00% $0.00
25 -41.00% $0.00
26 -49.00% $0.00
27 -41.00% $0.00
28 -49.00% $0.00
29 -42.00% $0.00
30 -45.00% $0.00
31 -41.00% $0.00

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 5

Monthly Valuation Date Reference Index Return Coupon Payment
32 -47.00% $0.00
33 -42.00% $0.00
34 -41.00% $0.00
35 -43.00% $0.00
36 -50.00% $0.00
37 -48.00% $0.00
38 -47.00% $0.00
39 -43.00% $0.00
40 -41.00% $0.00
41 -41.00% $0.00
42 -33.00% $0.27
43 5.00% $0.27
44 -29.00% $0.27
45 -19.00% $0.27
46 -20.00% $0.27
47 5.00% $0.27
48 5.00% $0.27
49 -37.00% $0.27
50 -29.00% $0.27
51 -2.00% $0.27
52 1.00% $0.27
53 -9.00% $0.27
54 -19.00% $0.27
55 -5.00% $0.27
56 2.00% $0.27
57 -36.00% $0.27
58 -21.00% $0.27
59 -38.00% $0.27
60 -11.00% $0.27
61 -3.00% $0.27
62 -19.00% $0.27
63 0.00% $0.27
64 -18.00% $0.27
65 -2.00% $0.27
66 -36.00% $0.27
67 -32.00% $0.27
68 2.00% $0.27
69 3.00% $0.27

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 6

Monthly Valuation Date Reference Index Return Coupon Payment
70 -19.00% $0.27
71 -37.00% $0.27
72 -2.00% $0.27
73 -28.00% $0.27
74 1.00% $0.27
75 1.00% $0.27
76 -4.00% $0.27
77 -13.00% $0.27
78 -35.00% $0.27
79 -12.00% $0.27
80 -6.00% $0.27
81 -31.00% $0.27
82 6.00% $0.27
83 -17.00% $0.27
84 -31.00% $0.27

Total Coupon Payments: $11.61 Variable Amount: $0.00 Maturity Amount: $100.00 Annual Compounded Return: 1.58%

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 7

Hypothetical Scenario #3 with Coupon Payments payable on fifty-nine Coupon Payment Dates and the Notes are called prior to maturity

In this hypothetical scenario, the Reference Index Return was greater than or equal to 10.00% on the 59th Valuation Date and the Reference Index Return was greater than or equal to -40.00% on fifty-nine Valuation Dates. Accordingly, the Notes were automatically called by CIBC on the related Call Date following the 59th Valuation Date and Investors would be entitled to receive Coupon Payments on fifty-nine Coupon Payment Dates (aggregate Coupon Payments of $15.93 over the term of the Notes). Since the Reference Index Return on the 59th Valuation Date was greater than 10.00%, the Notes will be called prior to maturity and the Variable Amount will be equal to $0.00 per Note, calculated as the product of $100.00 x 0.00%. In this example the total cumulative return is 15.93% (which is equal to an annual compounded return of 3.05%).

Monthly Valuation Date Reference Index Return Coupon Payment
1 -6.00% $0.27
2 -17.00% $0.27
3 -23.00% $0.27
4 6.00% $0.27
5 -7.00% $0.27
6 -37.00% $0.27
7 -21.00% $0.27
8 0.00% $0.27
9 -16.00% $0.27
10 -27.00% $0.27
11 -21.00% $0.27
12 -30.00% $0.27
13 -15.00% $0.27
14 -28.00% $0.27
15 -32.00% $0.27
16 -39.00% $0.27
17 -23.00% $0.27
18 9.00% $0.27
19 -1.00% $0.27
20 -1.00% $0.27
21 -28.00% $0.27
22 -26.00% $0.27
23 -16.00% $0.27
24 -18.00% $0.27
25 -14.00% $0.27
26 -38.00% $0.27
27 0.00% $0.27
28 -39.00% $0.27
29 -29.00% $0.27
30 -5.00% $0.27

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 8

Monthly Valuation Date Reference Index Return Coupon Payment
31 -12.00% $0.27
32 -6.00% $0.27
33 -37.00% $0.27
34 -31.00% $0.27
35 -32.00% $0.27
36 -15.00% $0.27
37 -1.00% $0.27
38 -1.00% $0.27
39 -13.00% $0.27
40 -11.00% $0.27
41 4.00% $0.27
42 -13.00% $0.27
43 9.00% $0.27
44 -5.00% $0.27
45 -28.00% $0.27
46 -24.00% $0.27
47 -34.00% $0.27
48 -39.00% $0.27
49 -4.00% $0.27
50 -9.00% $0.27
51 -36.00% $0.27
52 6.00% $0.27
53 0.00% $0.27
54 -4.00% $0.27
55 -10.00% $0.27
56 -34.00% $0.27
57 6.00% $0.27
58 -31.00% $0.27
59 11.00% $0.27

Total Coupon Payments: $15.93 Variable Amount: $0.00 Maturity Amount: $100.00 Annual Compounded Return: 3.05%

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 9

Investment Details

Issuer

Canadian Imperial Bank of Commerce (“CIBC”).

Principal Amount

$100.00 (Par) per Note.

Issue Size

Maximum $50,000,000 (500,000 Notes).

Minimum Subscription

$5,000 (50 Notes).

Reference Index

The Solactive Canada Bank 30 AR Index. The Solactive Canada Bank 30 AR Index is an adjusted return index that aims to track the gross total return performance of the Solactive Canada Bank TR Index, subject to a reduction of a synthetic dividend of 30 index points per annum calculated daily in arrears on a 360 day basis at the time the Reference Index is calculated. The Closing Level of the Reference Index on July 14, 2021 was 812.72. The Adjusted Return Factor divided by the level of the Reference Index was therefore equal to 3.69% on July 14, 2021. Over the term of the Notes, the sum of the Adjusted Return Factor of 30 points per annum will be approximately 210 index points, representing 25.84% of the level of the Reference Index on July 14, 2021. The Target Index is a gross total return index that reflects the applicable price changes of its constituent securities and any dividends and distributions paid in respect of such securities. For the calculation of the level of the Target Index, any dividends or other distributions paid on the constituent securities of the Target Index are assumed to be reinvested across all the constituent securities of the Target Index. There is no assurance of the ability of issuers of the securities comprising the Target Index to declare and pay dividends or make distributions in respect of the constituent securities of the Target Index or to sustain or increase such dividends and distributions at or above historical levels.

Issue Date

August 5, 2021

Maturity Date / Term

August 8, 2028 (7 years), provided that if such date is not a Business Day then the Maturity Date will be the immediately following Business Day, subject to the Notes being automatically called by CIBC on any Call Date and subject to the occurrence of a Market Disruption Event.

Coupon Payment Dates, Valuation Dates and Call Dates

Based on an Issue Date of August 5, 2021, the Coupon Payment Dates, Valuation Dates and Call Dates are as follows:

Valuation Dates Coupon Payment Dates Call Dates
August 30, 2021 September 07, 2021 -
September 28, 2021 October 05, 2021 -
October 29, 2021 November 05, 2021 -
November 29, 2021 December 06, 2021 -

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 10

Valuation Dates Coupon Payment Dates Call Dates
January 04, 2022 January 11, 2022 -
January 31, 2022 February 07, 2022 February 07, 2022
February 28, 2022 March 07, 2022 March 07, 2022
March 29, 2022 April 05, 2022 April 05, 2022
April 28, 2022 May 05, 2022 May 05, 2022
May 27, 2022 June 06, 2022 June 06, 2022
June 24, 2022 July 05, 2022 July 05, 2022
July 28, 2022 August 05, 2022 August 05, 2022
August 29, 2022 September 06, 2022 September 06, 2022
September 28, 2022 October 05, 2022 October 05, 2022
October 31, 2022 November 07, 2022 November 07, 2022
November 28, 2022 December 05, 2022 December 05, 2022
January 03, 2023 January 10, 2023 January 10, 2023
January 30, 2023 February 06, 2023 February 06, 2023
February 27, 2023 March 06, 2023 March 06, 2023
March 29, 2023 April 05, 2023 April 05, 2023
April 28, 2023 May 05, 2023 May 05, 2023
May 26, 2023 June 05, 2023 June 05, 2023
June 26, 2023 July 05, 2023 July 05, 2023
July 31, 2023 August 08, 2023 August 08, 2023
August 28, 2023 September 05, 2023 September 05, 2023
September 28, 2023 October 05, 2023 October 05, 2023
October 30, 2023 November 06, 2023 November 06, 2023
November 28, 2023 December 05, 2023 December 05, 2023
January 02, 2024 January 09, 2024 January 09, 2024
January 29, 2024 February 05, 2024 February 05, 2024
February 27, 2024 March 05, 2024 March 05, 2024
March 28, 2024 April 05, 2024 April 05, 2024
April 29, 2024 May 06, 2024 May 06, 2024
May 29, 2024 June 05, 2024 June 05, 2024
June 26, 2024 July 05, 2024 July 05, 2024
July 29, 2024 August 06, 2024 August 06, 2024
August 28, 2024 September 05, 2024 September 05, 2024
September 30, 2024 October 07, 2024 October 07, 2024
October 29, 2024 November 05, 2024 November 05, 2024
November 27, 2024 December 05, 2024 December 05, 2024
January 02, 2025 January 09, 2025 January 09, 2025
January 29, 2025 February 05, 2025 February 05, 2025

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 11

Valuation Dates Coupon Payment Dates Call Dates
February 26, 2025 March 05, 2025 March 05, 2025
March 31, 2025 April 07, 2025 April 07, 2025
April 28, 2025 May 05, 2025 May 05, 2025
May 29, 2025 June 05, 2025 June 05, 2025
June 26, 2025 July 07, 2025 July 07, 2025
July 28, 2025 August 05, 2025 August 05, 2025
August 28, 2025 September 05, 2025 September 05, 2025
September 29, 2025 October 06, 2025 October 06, 2025
October 29, 2025 November 05, 2025 November 05, 2025
November 28, 2025 December 05, 2025 December 05, 2025
January 02, 2026 January 09, 2026 January 09, 2026
January 29, 2026 February 05, 2026 February 05, 2026
February 26, 2026 March 05, 2026 March 05, 2026
March 27, 2026 April 06, 2026 April 06, 2026
April 28, 2026 May 05, 2026 May 05, 2026
May 29, 2026 June 05, 2026 June 05, 2026
June 25, 2026 July 06, 2026 July 06, 2026
July 28, 2026 August 05, 2026 August 05, 2026
August 31, 2026 September 08, 2026 September 08, 2026
September 28, 2026 October 05, 2026 October 05, 2026
October 29, 2026 November 05, 2026 November 05, 2026
November 30, 2026 December 07, 2026 December 07, 2026
January 04, 2027 January 11, 2027 January 11, 2027
January 29, 2027 February 05, 2027 February 05, 2027
February 26, 2027 March 05, 2027 March 05, 2027
March 29, 2027 April 05, 2027 April 05, 2027
April 28, 2027 May 05, 2027 May 05, 2027
May 28, 2027 June 07, 2027 June 07, 2027
June 25, 2027 July 05, 2027 July 05, 2027
July 28, 2027 August 05, 2027 August 05, 2027
August 30, 2027 September 07, 2027 September 07, 2027
September 28, 2027 October 05, 2027 October 05, 2027
October 29, 2027 November 05, 2027 November 05, 2027
November 29, 2027 December 06, 2027 December 06, 2027
January 04, 2028 January 11, 2028 January 11, 2028
January 31, 2028 February 07, 2028 February 07, 2028
February 28, 2028 March 06, 2028 March 06, 2028
March 29, 2028 April 05, 2028 April 05, 2028

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 12

Valuation Dates Coupon Payment Dates Call Dates
April 28, 2028 May 05, 2028 May 05, 2028
May 26, 2028 June 05, 2028 June 05, 2028
June 26, 2028 July 05, 2028 July 05, 2028
July 31, 2028 August 08, 2028 -

Provided that (i) if any such Coupon Payment Date is not a Business Day, then the Coupon Payment Date will be the next Business Day, subject to the occurrence of a Market Disruption Event; (ii) if the Issue Date is postponed, each Call Date will be postponed by an equivalent number of days, and provided further that if any such Call Date is not both a Business Day and at least five Business Days following the applicable Valuation Date, the applicable Call Date will be postponed until the next Business Day that is at least five Business Days following the immediately preceding Valuation Date, in each case subject to the occurrence of a Market Disruption Event; and (iii) if any such Valuation Date is not an Exchange Day, then the applicable Valuation Date will be the immediately preceding Exchange Day, subject to the occurrence of a Market Disruption Event.

Coupon Payments

On each monthly Coupon Payment Date during the term of the Notes, Investors will be eligible to receive a Coupon Payment equal to $0.27 per Note (the “Coupon Amount”). Coupon Payments will be determined as follows:

  • if the Reference Index Return on the immediately preceding Valuation Date is greater than or equal to -40.00%, the Coupon Payment will equal the Coupon Amount; and

  • if the Reference Index Return on the immediately preceding Valuation Date is less than -40.00%, the Coupon Payment will be $0.00 per Note.

The total Coupon Payments payable to Investors over the term of the Notes will not exceed $22.68 per Note (based on $0.27 per Note payable on each Coupon Payment Date). No Coupon Payments will be paid on a Coupon Payment Date if the Reference Index Return on the immediately preceding Valuation Date is less than -40.00% or if the Notes have been automatically called by CIBC on a preceding Call Date. There is no guarantee that any Coupon Payments will be paid during the term of the Notes.

Call Feature

The Notes will be automatically called by CIBC on a Call Date if the Reference Index Return on the Valuation Date immediately preceding such Call Date is greater than or equal to 10.00%.

Reference Index Return

The Reference Index Return will be a number (positive or negative), expressed as a percentage, determined as follows:

(Index LevelVD – Index LevelID) / Index LevelID,

where:

  • the “Index LevelVD” will be the Closing Level on the applicable Valuation Date; and

  • the “Index LevelID” will be the Closing Level on the Issue Date, provided that if the Issue Date is not an Exchange Day, the Index LevelID shall be determined on the next following Exchange Day (in which case references to the Closing Level on the Issue Date shall be deemed to refer to the Closing Level on such next following Exchange Day),

subject in each case to the provisions set out under “Market Disruption Events, Adjustments and Substitutions and Extraordinary Events” in the Prospectus.

CIBC Canadian Banks Index (AR) Autocallable Coupon Buffer Notes, Series 112 | 13

Maturity Amount

Investors will be entitled to receive on the later of (a) the fifth Business Day following the final Valuation Date and (b) the Maturity Date (the "Maturity Payment Date") (or on a Call Date, if the Notes are automatically called by CIBC prior to the Maturity Date) in respect of each Note held by such Investor, an amount (the “Maturity Amount”) equal to the sum of (i) the Principal Amount and (ii) the Variable Amount, which will either be nil or negative, subject to a minimum Maturity Amount of $1.00 per Note.

Variable Amount

The Variable Amount for a Note is an amount equal to the product of $100.00 multiplied by the following:

  • 0.00%, if the Reference Index Return is greater than or equal to -40.00% on the immediately preceding Valuation Date; or

  • the product of (i) the Reference Index Return plus 40.00%; and (ii) 166.66% (which will be negative in these circumstances and will result in a loss of a portion of the Principal Amount at maturity), if the Reference Index Return is less than -40.00% on the immediately preceding Valuation Date.

If the Notes are called by CIBC, Investors will not be entitled to receive any further return that they would have otherwise been entitled to receive if the Notes had not been called by CIBC.

Secondary Market and Early Trading Amount

The Notes will not be listed on any securities exchange or quotation system. CIBC World Markets Inc. (“CIBC WM”) intends to provide a daily secondary market for the sale of Notes to CIBC WM, but reserves the right not to do so, in its sole discretion, at any time without any prior notice to Investors. Under no circumstances will CIBC WM provide a secondary market for the Notes on or following a Valuation Date for the Notes if the Notes will be called by CIBC on the applicable Call Date. No other secondary market for the Notes will be available. Any sale in the secondary market may be made at a price less than the Principal Amount and will reflect the deduction of an early trading amount of 2.07% per Note initially, declining daily by 0.023% to 0.00% after 90 days. A sale of Notes originally purchased using the Fundserv network will be subject to certain additional procedures and limitations established by the Fundserv network.

An Investor who disposes of a Note to CIBC WM in the secondary market will generally be required to include in income as interest the amount, if any, by which the sale price exceeds the Principal Amount of such Note. Investors who dispose of a Note prior to maturity should consult their own tax advisors. See “Certain Canadian Federal Income Tax Considerations” in the Pricing Supplement.

Calculation Agent

CIBC WM.

Registered Account Eligibility

RRSPs, RRIFs, RESPs, RDSPs, certain DPSPs, and TFSAs.

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Fundserv is a registered trademark of Fundserv Inc.

This document should be read in conjunction with the short form base shelf prospectus dated November 5, 2019 (the “Prospectus”) and the CIBC Pricing Supplement No. 1,543 to the Prospectus dated July 22, 2021 (the “Pricing Supplement”).

An investment in the Notes involves risks not associated with conventional fixed rate or floating rate debt securities. None of CIBC, the Dealers or any of their respective affiliates, associates, or any other person or entity guarantees that holders of Notes will receive an amount equal to their original investment in the Notes or guarantees that any return will be paid on the Notes (subject to the minimum Maturity Amount of $1.00 per Note) at or prior to maturity of the Notes. Amounts paid to holders of the Notes will depend on the performance of the Reference Index. An investment in Notes is not suitable for a purchaser who does not understand (either on his or her own or with the help of a financial advisor) the terms of the Notes or the risks associated with the Notes and with structured products, options or similar financial instruments generally. See “Risk Factors” in the Prospectus and “Certain Risk Factors” in the Pricing Supplement. “Solactive” is a registered trademark of Solactive AG and has been licensed for use. Solactive AG makes no representation or warranty, express or implied, regarding the advisability of investing in securities generally or the Notes in particular. Neither Solactive AG nor any of its affiliates are involved in the operation or distribution of the Notes and neither Solactive AG nor its affiliates shall have any liability for operation or distribution of the Notes or the failure of the Notes to achieve their investment objective.

The Notes will not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking institution.

The principal amount of the Notes will not be fully guaranteed and, subject to the minimum Maturity Amount of $1.00 per Note, will be at risk. As a result, Investors could lose substantially all of their original investment in the Notes.

CIBC WM intends to provide a secondary market for the sale of Notes to CIBC WM but reserves the right not to do so, in its sole discretion, at any time without any prior notice to holders of Notes. There is no other market through which the Notes may be sold and purchasers may not be able to re-sell Notes.

CIBC WM is a wholly-owned subsidiary of CIBC. By virtue of such ownership, CIBC is a “related issuer” and a “connected issuer” of CIBC WM within the meaning of applicable securities legislation. See “Plan of Distribution” in the Prospectus.

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