TORONTO, April 6,
2023 /CNW/ - Canaccord Genuity Group Inc. (TSX:
CF) (the "Company" or "Canaccord Genuity") announced today that it
has filed and mailed a directors' circular (the "Directors'
Circular") in response to the take-over bid contemplated by the
take-over bid circular dated February 27,
2023 made by certain members of the Company's management
team (the "Management Group") to acquire all of the common shares
of the Company not already owned by the Management Group at a price
of $11.25 per share (the "Offer"). At
this time, the Board of Directors of Canaccord Genuity (the
"Board") is not making a recommendation to shareholders as the
current special committee (the "Special Committee") requires
additional time to make an informed recommendation to the
Board.
As stated in the Directors' Circular, in response to the Offer,
an independent committee of the Board was constituted in
August 2022 (the "Prior Special
Committee") and given the mandate to evaluate and consider the
Offer and to review any alternatives that would enhance value for
Canaccord Genuity and its shareholders that may be available to the
Company in light of the circumstances. Members of the Prior Special
Committee tendered their resignations from the Board effective
March 11, 2023. The members of the
current Special Committee were appointed during the period
March 12 to March 20, 2023.
While the Special Committee has been working diligently to carry
out its mandate, additional time is required in order to undertake
an informed analysis of the Offer, identify and consider any
alternatives and make a recommendation to the Board in respect of
the Offer and any such alternatives.
NO ACTION BY SHAREHOLDERS IS REQUIRED AT THIS TIME. The
Offer is open for acceptance until June 13,
2023 unless extended, accelerated or withdrawn in accordance
with its terms. The Board intends to communicate further with
shareholders on a timely basis, prior to such time, regarding its
recommendation in respect of the Offer.
Canaccord Genuity cautions its shareholders that there can be no
certainty that the Offer will be supported by the Board or that any
other strategic transaction with any other person will be pursued
by the Company, or ultimately completed.
ABOUT CANACCORD GENUITY GROUP
INC.
Through its principal subsidiaries, Canaccord Genuity Group Inc.
(the "Company") is a leading independent, full-service financial
services firm, with operations in two principal segments of the
securities industry: wealth management and capital markets. Since
its establishment in 1950, the Company has been driven by an
unwavering commitment to building lasting client relationships. We
achieve this by generating value for our individual, institutional
and corporate clients through comprehensive investment solutions,
brokerage services and investment banking services. The Company has
wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of
Man and Australia. The Company's
international capital markets division operates in North America, UK & Europe, Asia,
Australia, and the Middle East.
Canaccord Genuity Group Inc. is publicly traded under the symbol
CF on the TSX.
CAUTION REGARDING FORWARD-LOOKING
STATEMENTS
This press release may contain "forward-looking information" as
defined under applicable securities laws ("forward-looking
statements"). These statements relate to future events or future
performance and reflect the Company's expectations, beliefs, plans,
estimates, intentions and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
that are not historical facts, including statements related to the
Offer, the process to be followed by the Special Committee and its
ability to eventually make a recommendation regarding the Offer.
Such forward-looking statements reflect management's current
beliefs and are based on information currently available to the
Company. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "estimate", "predict",
"potential", "continue", "target", "intend", "could" or the
negative of these terms or other comparable terminology. By their
very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors
could cause actual events or results to differ materially from the
results discussed in the forward-looking statements.
In evaluating these statements, readers should specifically
consider various factors that may cause actual results to differ
materially from any forward-looking statement. These factors
include, but are not limited to, whether any alternative
transaction to the Offer may emerge, pursuant to an alternative
transaction process or otherwise, and the Company's and any other
interested party's, as applicable, ability to consummate such
alternatives; the possibility that the Management Group may not be
able to obtain or satisfy, in a timely manner or otherwise, the
minimum tender of common shares, or the required regulatory
approval and other conditions necessary to complete the Offer, or
the conditions of the Offer are not otherwise waived or satisfied;
market and general economic conditions (including slowing economic
growth, inflation and rising interest rates); the length of a
regulatory review and approval of the Offer or any alternative
transaction, if applicable; the dynamic nature of the financial
services industry; and the risks and uncertainties discussed from
time to time in the Company's interim condensed and annual
consolidated financial statements, its annual report and its annual
information form ("AIF") filed on www.sedar.com as well as the
factors discussed in the sections entitled "Risk Management" and
"Risk Factors" in the AIF, which include market, liquidity, credit,
operational, legal and regulatory risks.
Although the forward-looking statements contained in this press
release are based upon assumptions that the Company believes are
reasonable, there can be no assurance that actual results will be
consistent with these forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date of this press release and should not be relied upon
as representing the Company's views as of any date subsequent to
the date of this press release. Except as may be required by
applicable law, the Company does not undertake, and specifically
disclaims, any obligation to update or revise any forward-looking
statements, whether as a result of new information, further
developments or otherwise.
SOURCE Canaccord Genuity Group Inc.