Canaccord Genuity Group Inc. Announces Closing of $60 Million Private Placement of Convertible Unsecured Senior Subordinated Debentures

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

TORONTO, Oct. 27, 2016 /CNW/ - Canaccord Genuity Group Inc. (TSX:CF, the Company") is pleased to announce the closing of a private placement of convertible unsecured senior subordinated debentures of Canaccord Genuity Group Inc. in the aggregate principal amount of $60 million. The debentures were placed with a large Canadian asset manager.

As previously announced, the Company intends to use the net proceeds to finance growth in its wealth management business in Canada through the recruitment of Investment Advisors and for general corporate purposes.

The debentures will bear interest at a rate of 6.50% per annum, payable semi-annually on the last day of June and December each year commencing December 31, 2016 with a maturity date of December 31, 2021. The debentures will be convertible at the holder's option into Canaccord Genuity Group Inc. common shares at a conversion price of $6.50 per share. The debentures will mature on December 31, 2021 and may be redeemed by Canaccord Genuity Group Inc., in certain circumstances, on or after December 31, 2019.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. The debentures offered, and the common shares issuable upon the conversion or redemption of the debentures, have not been and will not be registered under the U.S. Securities Act of 1933 or state securities laws. Accordingly, the debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

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 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 anticipated use of proceeds of the debenture offering. 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. In addition, there may be circumstances that are not known to the Company at this time where the use of the net proceeds of the debenture offering for purposes other than those currently intended is advisable or in the best interests of the Company. 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 2017 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, 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 offices in 10 countries worldwide, including Wealth Management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. Canaccord Genuity, the international capital markets division, operates in Canada, the US, the UK, France, Ireland, Hong Kong, China, Australia and Dubai. To us there are no foreign markets.™

Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSX.

SOURCE Canaccord Genuity Group Inc.

Image with caption: "Canaccord Genuity Group Inc. (CNW Group/Canaccord Genuity Group Inc.)". Image available at: http://photos.newswire.ca/images/download/20161027_C7453_PHOTO_EN_806159.jpg

Christina Marinoff, Vice President, Investor Relations & Communications, Phone: [phone], email: [email protected], www.canaccordgenuitygroup.com