Ms. Christina Marinoff reports

CANACCORD GENUITY GROUP INC. PROVIDES UPDATES ON MANAGEMENT TAKE-OVER BID

Canaccord Genuity Group Inc. has provided the following update with respect to the proposed management takeover bid launched on Feb. 27, 2023.

Regulatory approval process

The company has recently been advised by certain of its applicable regulatory authorities that, due to a continuing regulatory matter involving one of the company's foreign subsidiaries, regulatory approval for the change in control contemplated by the management offer will not be granted on an expedited basis. The company is continuing discussions with the relevant regulatory authorities regarding the change in control applications. Based on these discussions, the company has now determined that required regulatory approvals will likely not be received in a timely enough manner to permit completion of the management offer prior to its current expiry date of June 13, 2023, and may not be received prior to expiration of the financing commitments for the management offer on Aug. 9, 2023. The receipt of regulatory approvals is a condition of the management offer.

The underlying regulatory matter, which arose in the company's capital markets business and has been continuing in the ordinary course, is unrelated to the management offer. In the response to the matter, the company's subsidiary has made significant enhancements to its compliance functions, and significant investments in additional staff and technology. The company expects that this regulatory matter will be resolved in the ordinary course and does not expect the prospective resolution to have a material impact on its financial condition or results of operations.

Agreement to amend offer condition

At the request of the special committee, the management offerors have agreed that it will no longer be a condition of the management offer that the company not commence any process, proposal, plan or intention related to the sale of a material asset of the company. The company understands that the management offerors expect to file and mail a notice of variation with respect to the foregoing during the week of May 8, 2023.

The special committee is continuing its assessment of the management offer and third party alternatives. While there is no current intention to propose the sale of any material asset of the company, the special committee is continuing its work and will provide further updates, as appropriate.

About Canaccord Genuity Group Inc.

Through its principal subsidiaries, Canaccord Genuity Group 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. It achieves this by generating value for its individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The company has wealth management offices located in Canada, the United Kingdom, Guernsey, Jersey, the Isle of Man and Australia. The company's international capital markets division operates in North America, the U.K., and Europe, Asia, Australia and the Middle East.

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