TORONTO, Aug. 3, 2021 /CNW/ - Canaccord Genuity Group
Inc. (TSX: CF) (TSX: CF.PR.A) (TSX: CF.PR.C) (the "Company")
announced today that it does not intend to exercise its right to
redeem all or any part of the currently outstanding Cumulative
5-Year Rate Reset First Preferred Shares, Series A of the Company
(the "Series A Preferred Shares") on September 30, 2021 (the "Conversion Date"). There
are currently 4,540,000 Series A Preferred Shares outstanding.
As a result and subject to certain conditions set out in the
short form prospectus dated June 16,
2011 relating to the issuance of the Series A Preferred
Shares, the holders of the Series A Preferred Shares have the
right, at their option, to convert all or any of their Series A
Preferred Shares, on a one-for-one basis, into Cumulative Floating
Rate First Preferred Shares, Series B of the Company (the "Series B
Preferred Shares") on the Conversion Date (the "Conversion
Privilege"). A formal notice of the Conversion Privilege will be
sent to the registered holder of the Series A Preferred Shares.
Holders who do not exercise their right to convert their Series
A Preferred Shares into Series B Preferred Shares will continue to
hold their Series A Preferred Shares and will have the opportunity
to convert their shares again on September
30, 2026, and every five years thereafter as long as the
shares remain outstanding.
The foregoing Conversion Privilege is subject to the following
conditions: (i) if the Company determines that there would be less
than 1,000,000 Series B Preferred Shares outstanding on the
Conversion Date, then holders of Series A Preferred Shares will not
be entitled to convert their shares into Series B Preferred Shares;
and (ii) alternatively, if the Company determines that there would
remain outstanding less than 1,000,000 Series A Preferred Shares on
the Conversion Date, then all remaining Series A Preferred Shares
will automatically be converted into Series B Preferred Shares on a
one-for-one basis on the Conversion Date. In either case, the
Company will give written notice to that effect to the registered
holder affected by the preceding conditions of the Series A
Preferred Shares no later than September 23,
2021.
The dividend rate applicable to the Series A Preferred Shares
for the five-year period commencing on October 1, 2021 and ending on and including
September 30, 2026, and the dividend
rate applicable to the Series B Preferred Shares for the
three-month period commencing on October 1,
2021 and ending on and including December 31, 2021, will be determined and
announced by way of a press release on September 1, 2021.
Beneficial owners of Series A Preferred Shares who wish to
exercise their Conversion Privilege should communicate as soon as
possible with their broker or other nominee to obtain instructions
for exercising such right during the conversion period, which runs
from August 31, 2021 until
5:00 p.m. (Toronto time) on September 15, 2021.
The Series A Preferred Shares and the Series B Preferred Shares
have not been and will not be registered under the U.S. Securities
Act of 1933, as amended (the "U.S. Securities Act") or the
securities laws of the United
States. Accordingly, the Series A Preferred Shares and the
Series B Preferred Shares may not be offered or sold within
the United States or to, or for
the account or benefit of, U.S. persons, except pursuant to
transactions exempt from registration under the U.S. Securities Act
or under the securities laws of the applicable state. This press
release does not constitute an offer to sell or a solicitation of
an offer to buy any security.
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 management's expectations, beliefs, plans,
estimates, intentions and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
that are not historical facts, the business and economic conditions
and Canaccord Genuity Group's growth, results of operations,
performance and business prospects and opportunities. Specifically,
this press release contains forward-looking statements with respect
to the Company, the Series A Preferred Shares and the Series B
Preferred Shares, including but not limited to future conversions,
redemptions and dividends. Such forward-looking statements
reflect management's current beliefs and are based on information
currently available to management. 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, market and general economic conditions, the 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. Material factors
or assumptions that were used by the Company to develop the
forward-looking statements contained in this press release include,
but are not limited to, those set out in the Fiscal 2022 Outlook
section in the annual MD&A and those discussed from time to
time in the Company's interim condensed and annual consolidated
financial statements, its annual report and the AIF filed on
www.sedar.com. The preceding list is not exhaustive of all possible
risk factors that may influence actual results. Readers are
cautioned that the preceding list of material factors or
assumptions is not exhaustive. Although the forward-looking
statements contained in this press release are based upon what
management believes are reasonable assumptions, 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.
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.
SOURCE Canaccord Genuity Group Inc.