/NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 1, 2017 /CNW/ - Canaccord Genuity
Acquisition Corp. ("CGAC" or the "Corporation") is
pleased to announce the closing (the "Closing") of its
initial public offering (the "Offering") of $30,000,000 of Class A Restricted Voting Units.
CGAC has granted the underwriters an over-allotment option to
purchase up to an additional 1,500,000 Class A Restricted Voting
Units on the same terms and conditions, exercisable in whole or in
part up to 30 days following closing of the Offering (the
"Over-Allotment Option"). The proceeds from the distribution
of the Class A Restricted Voting Units (along with the proceeds
from any exercise of the Over-Allotment Option granted by the
Corporation) were deposited into an escrow account and will only be
released upon certain prescribed conditions, as further described
in the final prospectus dated July 24,
2017 (the "Final Prospectus").
The sponsor of CGAC is CG Investments Inc. ("CGII"), a
wholly-owned subsidiary of Canaccord Genuity Group Inc. CGAC is a
newly organized special purpose acquisition corporation formed for
the purpose of effecting an acquisition of one or more businesses.
CGAC intends to target a growth company with an enterprise value of
between $50 million and $250 million
for its qualifying acquisition (the "QA"), although there is
no limit on the size, industry or geographic region of the
acquisition. The acquisition target is expected to be an operating
business that would benefit from being a public company.
Each Class A Restricted Voting Unit has an offering price of
$3.00 per Class A Restricted Voting
Unit and consists of one Class A Restricted Voting Share and one
Warrant. Prior to any QA, the Class A Restricted Voting Shares and
Warrants will trade as a unit and may only be redeemed as a unit.
On or following completion of the Corporation's QA, each Class A
Restricted Voting Share (unless previously redeemed) and each Class
B Share of the Corporation would be automatically converted into
one Common Share. Each Warrant will entitle the holder to purchase
one Common Share of CGAC for a purchase price of $3.45 commencing 30 days after the closing date
of CGAC's QA and will expire five years after the closing date of
such QA. Upon certain events, the Class A Restricted Voting Units
will be redeemable by holders for a pro‐rata portion
of the escrow account, net of taxes payable and other prescribed
amounts, as further described in the final prospectus. The Class A
Restricted Voting Units will commence trading today on the Toronto
Stock Exchange under the symbol "CGAC.UN".
Concurrent with Closing, CGII purchased 833,333 Class B Units of
the Corporation (each consisting of one Class B Share and one
Warrant) for a purchase price of $3.00 per Class B Unit, resulting in aggregate
proceeds of approximately $2,500,000
to CGAC. When aggregated with existing positions owned by CGII
(assuming the separation of the Class B Units), CGII owns 3,827,917
Class B Shares and 833,333 Warrants, representing an approximate
97.0% interest in the Class B Shares and an approximate 27.4% of
the total Class A Restricted Voting Shares and Class B Shares
(assuming no forfeiture of Class B Shares or acquisition of
additional Class B Units depending on the extent to which the
Over-Allotment Option is exercised).
CGII's position in CGAC was acquired for investment purposes.
CGII is restricted from selling its Class B Shares and Class B
Units as described in the Final Prospectus. CGII will acquire
additional Class B Units if the Over-Allotment Option is exercised,
and may purchase and/or sell any Class A Restricted Voting Units
from time to time, subject to applicable law. In connection with
the Offering, and as sponsor to CGAC, CGII entered into certain
material agreements, all as described in the Final Prospectus.
CGAC's and CGII's head and registered offices are located at 161
Bay Street, Suite 3000 Toronto,
Ontario M5J 2S1
The Offering is being distributed by a syndicate of underwriters
led by Canaccord Genuity Corp. and Cormark Securities Inc., as
independent underwriter. Goodmans LLP is acting as legal counsel to
CGAC and CGII. Blake, Cassels & Graydon LLP is acting as legal
counsel to the Underwriters.
This press release is not an offer of securities for sale in
the United States, and the
securities may not be offered or sold in the United States absent registration or an
exemption from registration. The securities have not been and will
not be registered under the United States Securities Act of 1933.
Copies of the final prospectus are available on SEDAR at
www.sedar.com.
About Canaccord Genuity Acquisition Corp.
Canaccord Genuity Acquisition Corp. is a newly organized special
purpose acquisition corporation incorporated under the laws of the
Province of Ontario for the
purpose of effecting a qualifying acquisition.
About CG Investments Inc.
CG Investments Inc. is the sponsor of CGAC. CG Investments Inc.
is a wholly-owned subsidiary of Canaccord Genuity Group Inc., a
leading independent, full-service financial services firm, with
operations in two principal segments of the securities industry:
capital markets and wealth management.
Forward Looking Statements
This press release may contain forward‐looking information
within the meaning of applicable securities legislation, which
reflects CGII's and CGAC's current expectations regarding future
events. Forward‐looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond CGII's or CGAC's control, which could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward‐looking
information. Such risks and uncertainties include, but are not
limited to, failure to complete the Offering and related
transactions, and the factors discussed under "Risk Factors" in the
final prospectus of CGAC dated July 24,
2017, a copy of which is available on SEDAR at
www.sedar.com. Neither CGII nor CGAC undertake any
obligation to update such forward‐looking information, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
SOURCE Canaccord Genuity Acquisition Corp.