22nd Jun 2005 07:05
Canaccord Capital Inc. shares commence trading on AIM LONDON, England & VANCOUVER, June 22 /CNW/ - Canaccord Capital Inc.(CCI: TSX & AIM) is pleased to announce that it has been admitted to theAlternative Investment Market (AIM), a market operated by London StockExchange plc, and that its common shares commenced trading today on AIM underthe symbol "CCI". Grant Thornton Corporate Finance is the Company's NominatedAdviser and Canaccord Capital (Europe) Limited is acting exclusively for theCompany as broker. Peter M. Brown, Chairman & CEO, stated "Canaccord will now be publiclytraded on the Toronto Stock Exchange (TSX) in Canada and on AIM in the UnitedKingdom providing Canaccord and our shareholders with greater visibility,enhanced liquidity and a broader group of market comparables." ABOUT CANACCORD CAPITAL INC.: Canaccord is a leading Canadian independent full service investmentdealer. Canaccord has substantial operations in each of the two principalsegments of the securities industry: Private Client Services and GlobalCapital Markets. Together these operations offer a wide range of complementaryinvestment products, brokerage services and investment banking services toCanaccord's retail, institutional and corporate clients. Canaccord hasapproximately 1,260 employees worldwide, including 434 Investment Advisors,located in 28 offices across Canada and internationally. ADDITIONAL BACKGROUND INFORMATION: The following information is derived from and should be read inconjunction with the full text of the admission document published 16 June2005, particularly the section headed "Risk Factors". History and Background Canaccord is a leading Canadian independent full service investmentdealer. As a full service dealer, Canaccord offers its institutional,corporate and private clients a wide range of investment products, brokerageservices, research and investment banking services. In addition to itsactivities in Canada, Canaccord has an established presence in the Europeancapital markets sector with an office in London providing research,institutional trading and investment banking services to European andinternational clients. Canaccord, through a predecessor corporation, commenced business in 1950and since then Canaccord's business has grown substantially with operationsnow diversified along multiple business lines, products, services, industrysectors, deal sizes and geographically. Since 1992 Canaccord has been majority-owned by its employees. In 2002Canaccord established a business relationship with Manulife FinancialCorporation and its affiliates (Manulife). At that time, Manulife acquired anindirect 20 per cent interest in Canaccord and provided Canaccord with certainManulife private client product offerings. Manulife is a major Canadian-basedfinancial services company, operating worldwide, offering a diverse range offinancial protection products and wealth management services. In 2004Canaccord became a public company and was listed on the TSX in conjunctionwith the completion of an initial public offering in Canada in which it raised$70 million. Business of Canaccord Canaccord has operations in each of the two principal segments of thesecurities industry in Canada: private client services and capital markets.Complementing its activities in Canada, Canaccord has operations in theEuropean capital markets sector with an office in London. Supporting these twoprincipal operating units are operations, technology, compliance and financeteams that comprise Canaccord's supporting infrastructure. Private Client Services Canaccord's private clients are primarily individuals and high net worthaccounts located in Canada, the United States, Europe and internationally. Canaccord's private client services group provides a variety ofcomprehensive brokerage services and wealth management products and servicesto clients to assist them in building their financial assets throughmaximising their returns within the context of their investment objectives andrisk tolerance. Canaccord offers its clients various account structures includingcommission-based accounts, fee-based accounts, managed accounts and marginaccounts. Canaccord's private client services include investment advice,brokerage services, research, portfolio managed accounts, fee-based accounts,retirement savings plans, financial planning services, insurance products, on-line account access and Manulife products. Global Capital Markets Canaccord's global capital markets group operates as an integrated unitto provide comprehensive high quality service to its corporate andinstitutional clients through the provision of selected products and services.The principal operational activities within the global capital markets groupare: Investment Banking: Canaccord arranges, manages and participates in abroad range of public offerings and private placements principally in equitysecurities or convertible instruments of public companies or companies goingpublic through an initial public offering. Canaccord also provides otherfinancial advisory services to its corporate and institutional clients. Venture Capital: Canaccord's venture capital group serves smallercorporate clients seeking to obtain funds for growth and project development.By serving and meeting the needs of corporate clients during the earlyformative stage of their development when financing requirements are usuallysmall, Canaccord is able to establish relationships and continue to servethese clients as they mature and their financing requirements grow. Research: Canaccord's research department provides in-depth analyses ofthe economic environment, markets and individual securities to give clients asteady stream of new investment ideas and insights. Institutional Sales and Trading: Canaccord's institutional sales andtrading operation provides services to many of the major financialinstitutions in Canada and several money managers in the U.S. and Europe. International and Principal Trading: Canaccord has an extensiveinternational trading operation that deals principally with U.S. brokeragefirms executing orders on their behalf in Canadian listed equities and tradingin U.S. equities on behalf of Canadian clients. Fixed Income Trading: Canaccord's fixed income department trades on aprincipal basis in various fixed income instruments comprised mainly ofCanadian and U.S. government bonds and treasury bills, provincial bonds,securities of federal and provincial government agencies and crowncorporations and corporate debt. Canaccord's global capital markets group has professionals located in itsprincipal offices in Vancouver, Toronto, Calgary, Montreal and London. Operations and Support Services Canaccord's operations and support services are responsible for front andback office information technology systems, compliance, legal and riskmanagement, operations, finance and all administrative functions. Canaccord's front office information technology systems includeapplications for providing and enhancing client service and increasing theeffectiveness and information access capabilities of Canaccord's investmentadvisers and capital markets professionals. Canaccord's back officeinformation technology systems include applications in respect of informationand transaction processing, control systems and management informationreporting. Canaccord has adopted a disciplined approach to risk management andhas developed specific administrative and business policies, procedures andreports to assist in the management and control of risk. Canaccord also provides recordkeeping, trading and other administrativesupport services to other brokerage firms through its correspondent brokerageservices business unit. Reasons for Admission The Directors believe that the Company has reached a stage in itsdevelopment where it is appropriate to seek admission of its share capital toAIM, a market where the shares of a number of its clients are quoted.Admission to AIM will also provide the Company with an increased profile withEuropean institutional investors. Financial Information Certain financial information in respect of Canaccord's operating resultsfor the last three completed fiscal years is set out in the table below. Years Ended March 31, 2005 2004 2003 ---- ---- ---- (in thousands of Canadian dollars) Revenue Private client services 178,176 175,983 97,784 Global capital markets 239,654 211,758 91,629 Other 14,948 14,416 9,793 --------- --------- --------- 432,778 402,157 199,206 Expenses 360,022 339,600 204,744 --------- --------- --------- Income (loss) before income taxes 72,756 62,557 (5,538) Income taxes 24,177 22,128 (485) --------- --------- --------- Net income (loss) 48,579 40,429 (5,053) --------- --------- --------- --------- --------- --------- ------------------------------------------------------------------------- Nothing in Canaccord's Web site www.canaccord.com should be considered incorporated herein by reference. ------------------------------------------------------------------------- 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: bobbym(at)buchanan.uk.com (CCI) ENDCANACCORD CAPITAL INC.Related Shares:
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