4th Jan 2006 07:00
Canaccord Capital Inc. closes acquisition of Adams Harkness Financial Group, Inc. Canaccord Adams commences global operations in the small to mid cap market niche VANCOUVER, Jan. 3 /CNW/ - Canaccord Capital Inc. ("Canaccord", CCI: TSX &AIM) today announced the completion of its acquisition of Adams HarknessFinancial Group, Inc. ("Adams Harkness"), a Boston, Mass.-based institutionalinvestment bank. This partnership signals a new identity for Canaccord'scapital markets operations - Canaccord Adams. Canaccord Adams providesinstitutional and corporate clients an internationally integrated distributionplatform and focused sector expertise, with continued idea-driven services inour small to mid cap market niche. The addition of Adams Harkness to Canaccord's existing platform willallow for enhanced client service in M&A, corporate finance, institutionalsales and trading execution, and continues the company's focus on innovative,independent research. Canaccord Adams will facilitate distribution of itsportfolio of products and services in three core capital markets - Canada, theUS and Europe. This access builds upon an established focus on the globalsmall to mid cap market niche and offers clients expertise in the metals andmining, energy, technology, life sciences and diversified sectors. The consideration for the closing of the acquisition includedUS$8 million in cash and the issuance of 1,342,696 Canaccord Capital Inc.common shares from treasury at C$10.50 per share. These shares will be held inescrow until June 30, 2008, with annual releases of one-third per year,beginning on June 30, 2006. Canaccord has applied for the 1,342,696 commonshares to be admitted to trading on AIM and admission is expected on or aboutJanuary 4, 2006. In addition, 1,118,952 common shares of Canaccord CapitalInc. were reserved for issuance from treasury at C$10.50 per share inassociation with a retention pool for certain key employees of Adams Harknessto be paid after a three-year vesting period. The total number of commonshares to be vested is also based on achievement of revenue targets and willbe included in diluted common shares outstanding as such targets are achieved.Including the shares issued today, Canaccord Capital Inc. has 47,827,350common shares outstanding. ABOUT CANACCORD CAPITAL INC.: Through its principal subsidiaries, Canaccord Capital Inc. (CCI) is aleading independent full service investment dealer in Canada with substantialcapital markets operations in the United Kingdom and the United States ofAmerica and is publicly traded on both the Toronto Stock Exchange and theAlternative Investment Market (AIM), a market operated by the London StockExchange. Canaccord has operations in two of the principal segments of thesecurities industry: private client services and capital markets. Together,these operations offer a wide range of complementary investment products,brokerage services and investment banking services to Canaccord's retail,institutional and corporate clients. Canaccord has approximately 1,450employees worldwide in 31 offices, including Investment Advisors in its 25Private Client Services offices located across Canada. Operating under theCanaccord Adams brand name, its international capital markets professionalsare based in Toronto, Montrĩal, Vancouver and Calgary in Canada, in London inthe UK and in Boston, New York and San Francisco in the US. Caution regarding forward-looking statements This press release may contain certain forward-looking statements. Thesestatements relate to future events or future performance and reflectmanagement's expectations regarding Canaccord's growth, results of operations,performance and business prospects and opportunities. Such forward-lookingstatements reflect management's current beliefs and are based on informationcurrently available to management. In some cases, forward-looking statementscan be identified by terminology such as "may", "will", "should", "expect","plan", "anticipate", "believe", "estimate", "predict", "potential","continue", "target" or the negative of these terms or other comparableterminology. By their very nature, forward-looking statements involve inherentrisks and uncertainties, both general and specific, and a number of factorscould cause actual events or results to differ materially from the resultsdiscussed in the forward-looking statements. In evaluating these statements,readers should specifically consider various factors, which may cause actualresults to differ materially from any forward-looking statement. These factorsinclude, but are not limited to, market and general economic conditions, thenature of the financial services industry and the risks and uncertaintiesdetailed from time to time in Canaccord's interim and annual financialstatements and its Annual Report and Annual Information Form filed onwww.sedar.com. These forward-looking statements are made as of the date ofthis document, and Canaccord assumes no obligation to update or revise them toreflect new events or circumstances. For further information: Anthony Ostler, Senior Vice President, InvestorRelations & Communications, Phone: (604) 643-7647, Email:anthony_ostler(at)canaccord.com; London: Bobby Morse, Charles Ryland, BuchananCommunications, Phone: +44 (0) 207 466 5000, Email: benw(at)buchanan.uk.com;United States: Bridget O'Brien, Adams Harkness, Phone: (617) 788-1505, Email:bobrien(at)adamsharkness.com (CCI.) ENDCANACCORD CAPITAL INC.Related Shares:
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