Equitable Announces Closing of $230 Million Subscription Receipt Offering

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TORONTO, Feb. 16, 2022 /CNW/ - Equitable Group Inc. ("Equitable") (TSX: EQB) (TSX: EQB.PR.C) is pleased to announce that it has closed its previously announced bought deal offering (the "Offering") and has issued 3,266,000 subscription receipts (the "Subscription Receipts") at a price of $70.50 per Subscription Receipt for gross proceeds of approximately $230 million. This includes the issuance of 426,000 Subscription Receipts on the exercise in full of the over-allotment option granted to the underwriters, which was exercised concurrently with the closing of the Offering. The Offering was made through a syndicate of underwriters bookrun by TD Securities Inc. and RBC Capital Markets, and co-led by CIBC World Markets, Scotia Capital Inc. and BMO Capital Markets.

The net proceeds of the Offering will be used by Equitable to increase the capital of Equitable Bank, a wholly-owned subsidiary of Equitable, and Equitable Bank will in turn use the proceeds to fund a portion of the purchase price and closing expenses associated with the previously announced acquisition by Equitable Bank of an 84% equity interest in Concentra Bank from Credit Union Central of Saskatchewan (the "Acquisition").

Each Subscription Receipt will entitle the holder thereof to receive, concurrent with closing of the Acquisition and upon satisfaction of certain escrow release conditions and without payment of additional consideration or further action, one common share of Equitable. Holders of Subscription Receipts will be entitled to receive cash payments ("Dividend Equivalent Payments") in respect of each of their Subscription Receipts that are equal to, and will be paid on the same date as, dividends declared by Equitable on its common shares.

The gross proceeds from the sale of the Subscription Receipts less 50% of the commission payable to the underwriters of the Offering will be held by an escrow agent pending, among other things, receipt of all regulatory and government approvals required to finalize the Acquisition, and fulfillment or waiver of all other outstanding conditions precedent to closing the Acquisition. In the event the Acquisition does not close prior to 5:00 pm EST on February 7, 2023, or if the agreement with respect to the Acquisition is terminated prior to such time, the holders of the Subscription Receipts will be entitled to receive an amount equal to the full subscription price thereof plus their pro rata share of the interest earned on such amount and any Dividend Equivalent Payments to which they are entitled, net of any applicable withholding taxes.

The subscription receipts will commence trading on the Toronto Stock Exchange today under the symbol EQB.R.

This news release does not constitute an offer to sell or the solicitation of an offer to buy Subscription Receipts or common shares issuable upon the exchange of Subscription Receipts in the United States or in any Jurisdiction in which such an offer, solicitation or sale would be unlawful. The Subscription Receipts and common shares issuable upon the exchange of Subscription Receipts have not been approved or disapproved by any regulatory authority. The Subscription Receipts and common shares issuable upon the exchange of Subscription Receipts have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered, sold or delivered in the United States except in transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About Equitable Inc.

Equitable Group Inc. trades on the Toronto Stock Exchange (TSX: EQB and EQB.PR.C) and serves more than 325,000 Canadians through its wholly-owned subsidiary Equitable Bank, Canada's Challenger Bank™. Equitable Bank has a clear mandate to drive change in Canadian banking to enrich people's lives. Founded over 50 years ago, Equitable Bank provides diversified personal and commercial banking and through its EQ Bank platform (eqbank.ca) has been named #1 Bank in Canada on the Forbes World's Best Banks 2021 list. Please visit equitablebank.ca for details.

Forward-Looking Information

Certain information contained relating to, but not limited to, Equitable and its businesses, the Acquisition and the use of proceeds from the sale of Subscription Receipts constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that Equitable expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "will", "may", "estimate", "anticipate", "believe", "expect", "potential", "plan", "intend", ''target", ''project", ''forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, statements with respect to the timing of closing of the Acquisition and the use of the proceeds from the sale of Subscription Receipts. Additional information on risks, uncertainties and factors that could affect the foregoing forward-looking information and/or Equitable's operations or financial results is included in its filings with the securities commissions or similar authorities in each of the provinces and territories of Canada, as may be updated from time to time. Readers are also cautioned that such additional information is not exhaustive. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are independent and management's future course of action would depend on, is assessment of all information at that time. Although Equitable believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. Equitable makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Equitable does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

All dollar amounts contained m this news release are in Canadian dollars unless otherwise specified.

SOURCE Equitable Group Inc.

Richard Gill, Senior Director, Corporate Development & Investor Relations, [email protected], 416-513-3638; Sarah Farano, Manager, Investor Relations & ESG, [email protected], 416-513-4144; Media Inquiries: Jessica Kosmack, Senior Manager, Communications, [email protected], 647-600-2512