Kevin M. Sullivan to Propose New Directors for GMP Capital Inc.

TORONTO, Sept. 4, 2020 /CNW/ - Kevin M. Sullivan announced today that he has notified GMP Capital Inc. ("GMP") that he will be proposing new directors for election at the upcoming annual and special meeting of GMP's shareholders (the "Meeting") scheduled to be held on October 6, 2020.

Mr. Sullivan also announced that he opposes the most recent terms agreed to between GMP and Richardson Financial Group Limited ("RFGL"), as disclosed on August 13, 2020, by which it is contemplated that GMP would consolidate ownership of 100% of Richardson GMP Limited ("Richardson GMP").

Mr. Sullivan is a substantial shareholder of GMP and devoted almost 25 years of his professional life to its success.  He played a key role in the establishment and growth of both GMP and Richardson GMP, having previously served in a number of capacities including as President, Chief Executive Officer, Deputy Chairman and a director of GMP and as Chairman of the Board of Richardson GMP.  Mr. Sullivan beneficially owns, directly or indirectly, an aggregate of 2,982,949 common shares of GMP, or approximately 4.0% of GMP's outstanding common shares.

Last week, Mr. Sullivan advised the Chairman of the Board of GMP that he believes the latest terms agreed to by GMP unduly favour RFGL at the expense of GMP's other shareholders, and will not be approved by GMP's shareholders.  Mr. Sullivan believes that GMP's consolidation of the ownership of Richardson GMP would be in the best interests of GMP, provided that the transaction is undertaken on terms that are fair to all GMP shareholders.  Mr. Sullivan is also concerned that GMP's existing board has now tried twice to gain support for terms that unduly favour the interests of RFGL over GMP's other shareholders.   In an effort to achieve a fair and executable transaction, Mr. Sullivan advised GMP's Chairman of the terms that Mr. Sullivan would support and that he believes would also be supported by GMP's non-RFGL shareholders generally. Mr. Sullivan believes that these terms would also be more favourable to the Richardson GMP investment advisor shareholders, who are essential to the future success of the business.

In response, Mr. Sullivan was told earlier this week that RFGL was unwilling to discuss or negotiate revised terms.

Further information regarding Mr. Sullivan's intended reconstitution of GMP's board of directors at the Meeting, and the new proposed director nominees, as well as the terms that Mr. Sullivan would support for the Richardson GMP transaction, will be set forth in an information circular which Mr. Sullivan intends to file with Canadian securities regulators in due course.

SOURCE Kevin M. Sullivan

Michael D. Woollcombe, Voorheis & Co. LLP, 416-947-1700, [email protected]