Canaccord Genuity Group Inc. Announces Redemption of 6.25% Convertible Debentures and Director Resignation

TORONTO , March 18, 2021 /CNW/ - Canaccord Genuity Group Inc. (the "Company") (TSX: CF) today announced its intention to redeem the entire $132,690,000 principal amount of its 6.25% convertible unsecured senior subordinated debentures due December 31, 2023 (the "Debentures") on the following terms:

As previously announced, the Company entered into a first supplemental indenture to the indenture governing the Debentures to provide:

• The Company with the right to redeem (the "Amended Redemption Right"), at its option and from time to time, between April 1, 2021 and October 31, 2021 , any or all of the outstanding Debentures, for consideration of (for each $1,000 principal amount of Debentures held) cash equal to (i) the greater of (A) 125% of the principal amount, being $1,250 , and (B) the sum of * the amount calculated by multiplying 100 by the volume weighted average price of the common shares of the Company ("Common Shares") for the 20 trading day period ending two trading days prior to the date upon which the Company issues a press release announcing its intention to exercise the Amended Redemption Right and (y) $40.00 ; plus (ii) accrued and unpaid interest up to, but excluding, the date of redemption.
• For the suspension of Debentureholders' right to convert their Debentures into Common Shares until November 1, 2021 .

The volume weighted average price of the Common Shares for the 20 trading day period from February 17, 2021 , to March 16, 2021 , was $12.0551 .

In order to fund the redemption in part, the Company has entered into a commitment letter with HPS Investment Partners, LLC ("HPS") (on behalf of certain funds or accounts managed by HPS Investment Partners, LLC) for a senior secured first lien term loan facility in an aggregate principal amount equal to C$120.0 million to be funded in GBP equivalent in a single borrowing before the Redemption Date. This facility is intended to be repaid out of the proceeds of the previously announced acquisition by certain funds or accounts managed by HPS of preferred shares issued by Canaccord Genuity Wealth Group Holdings (Jersey) Limited.

Director resignation

The Company also announced that Eric Rosenfeld has resigned as a director effective today. Dan Daviau , Canaccord Genuity's CEO commented, "Eric has helped to create very significant shareholder value during his tenure on the Board and we are greatly appreciative of his efforts and insight." David Kassie , Canaccord's Chairman added, "Eric has provided a very valuable market perspective and he has been a superb board member. On behalf of the Board, I thank him for his major contributions."

Eric Rosenfeld , Crescendo Partners CEO, commented, "Canaccord Genuity has effected significant improvements during the past year in its capital structure and operations and it is positioned ideally for the future. I am thrilled to have been a part of Canaccord during this past year of transformation as an active board member."

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain "forward-looking statements" (as defined under applicable securities laws). 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, including business and economic conditions and the Company's growth, results of operations, performance, business prospects and opportunities. 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, the Company's ability to secure the financing required to redeem the Debentures, and the anticipated benefits of the redemption of the Debentures to the parties, holders of Debentures and other stakeholders of the Company. Please also refer to the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements and in its 2020 Annual Report and AIF filed on www.sedar.com as well as the factors discussed in the section entitled "Risks" in its MD&A, as provided in its fiscal 2020 annual report and its Q3 of fiscal 2021 quarterly report, for a discussion of the risks and uncertainties affecting the Company. Material factors or assumptions that were used by the Company to develop the forward-looking information contained in this press release include, but are not limited to, those set out in the Fiscal 2021 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 and in its fiscal 2020 Annual Report, Q3/21 quarterly report and 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 also not exhaustive.

Although the forward-looking information contained in this press release is 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. Certain statements included in this press release may be considered "financial outlook" for purposes of applicable Canadian securities laws, and such financial outlook may not be appropriate for purposes other than 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 information, 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.

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