/NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Sept. 20, 2018 /CNW/ - Canaccord Genuity Growth Corp. ("CGGC") is pleased to announce the closing (the "Closing") of its initial public offering (the "Offering") of 15,352,500 of Class A restricted voting units of CGGC (the "Class A Restricted Voting Units") (including 2,002,500 Class A Restricted Voting Units issued pursuant to the exercise in full of the over-allotment option granted by CGGC to the Underwriters (as defined below)) at an offering price of $3.00 per Class A Restricted Units for gross proceeds of $46,057,500. The gross proceeds from the Offering were deposited into an escrow account pending completion of a qualifying transaction by CGGC and will only be released upon certain prescribed conditions, as further described in CGGC's final prospectus dated September 13, 2018 (the "Final Prospectus").
Each Class A Restricted Voting Unit is comprised of a Class A restricted voting share (a "Class A Restricted Voting Share") and a share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one common share of CGGC (a "Common Share") for a purchase price of $3.45, commencing 65 days after the completion of its qualifying transaction and will expire on the day that is five years after the closing date of the qualifying transaction or earlier. Prior to any qualifying transaction, the Class A Restricted Voting Shares and Warrants comprising the Class A Restricted Voting Units will trade as a unit and may only be redeemed as a unit. Class A Restricted Voting Units will be redeemable for a pro-rata portion of the amount then held in the escrow account, net of taxes payable and other prescribed amounts. Each Class A Restricted Voting Unit will separate following the closing of the qualifying transaction into one Common Share and one Warrant. Following completion of the qualifying transaction, (i) the Class A Restricted Voting Shares will convert into Common Shares and (ii) the Common Shares and the Warrants will separate and trade separately.
The Class A Restricted Voting Units will commence trading today on the Aequitas NEO Exchange Inc. under the symbol CGGC.UN. The Class B Units and Class B Shares (each as defined below) will not be listed prior to the qualifying transaction, as described in the Final Prospectus.
The Offering was distributed by a syndicate of underwriters co-led by Canaccord Genuity Corp. and Cormark Securities Inc. (the "Underwriters").
The sponsor of CGGC is CG Investments Inc. ("CGII"), a wholly-owned subsidiary of Canaccord Genuity Group Inc. and an affiliate of Canaccord Genuity Corp. ("Canaccord Genuity"). Concurrent with the Closing, CGII purchased 833,333 Class B units (the "Class B Units") of the Corporation (each consisting of one Class B share (a "Class B Share") and one Warrant) for a purchase price of $3.00 per Class B Unit, for aggregate proceeds of $2,500,000 to CGGC. When aggregated with existing shares owned by CGII (and assuming the separation of the Class B Units), CGII owns 4,759,791 Class B Shares and 833,333 Warrants, representing an approximate 97.5% interest in the Class B Shares and approximately 23.5% of the total Class A Restricted Voting Shares and Class B Shares.
CGII's position in CGGC 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 may purchase and/or sell any Class A Restricted Voting Units it acquires from time to time, subject to applicable law. In connection with the Offering, and as Sponsor to CGGC, CGII entered into certain material agreements, all as described in the Final Prospectus.
CGGC's and CGII's head and registered offices are located at 161 Bay Street, Suite 3000 Toronto, Ontario M5J 2S1.
Blake, Cassels & Graydon LLP is acting as legal counsel to CGGC and CGII. Stikeman Elliott 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.
About Canaccord Genuity Growth Corp.
Canaccord Genuity Growth 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 transaction within a specified period of time.
About CG Investments Inc.
CG Investments Inc. is the sponsor of CGGC. 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.
This press release may contain forward‐looking information within the meaning of applicable securities legislation, which reflects CGII's and CGGC'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 CGGC'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 CGGC dated September 13, 2018, a copy of which is available on SEDAR at www.sedar.com. Neither CGII nor CGGC 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 Growth Corp.
For further information: Canaccord Genuity Growth Corp., Michael Shuh, Chairman and Chief Executive Officer, (416) 869-7376