Mr. Andrew Moor reports

EQB ANNOUNCES AGREEMENT TO ACQUIRE CANADIAN ALTERNATIVE ASSET MANAGER ACM ADVISORS

EQB Inc. and ACM Advisors Ltd. have entered into a definitive agreements by which EQB will acquire a 75-per-cent interest in ACM in a cash and share transaction.

With $4.8-billion in assets under management as of Sept. 30, 2023, ACM is one of the most respected independent alternative asset managers in Canada. Established in 1993 and based in Vancouver, B.C., ACM specializes in the creation, structuring and management of pooled Canadian commercial mortgage funds on behalf of pension plans, investment funds, charitable foundations, corporations and accredited retail investors. ACM will operate as an independent subsidiary of EQB (separate and distinct from EQB's wholly owned subsidiary Equitable Bank, Canada's Challenger Bank).

EQB anticipates the acquisition will close before the end of 2023, subject to the receipt of regulatory approvals.

Strategic expansion into wealth management with a proven, well-established platform

Andrew Moor, president and chief executive officer of EQB, said: "Organically and through accretive acquisitions, we've positioned EQB to grow, innovate and diversify as a leading Canadian financial services company. The addition of ACM Advisors, one of the most well-respected alternative fund managers in Canada with a focus on commercial assets, brings EQB an exciting platform for expansion with new capabilities. ACM's pooled funds expertly invest in curated commercial real estate mortgages to deliver best-in-class long-term returns for its clients. This is an asset class EQB knows well since we have provided financing to commercial clients for more than 50 years within Equitable Bank. As part of EQB, ACM has the support to successfully scale in the years ahead."

Chad Mallow, president and chief executive officer of ACM, said: "We're delighted to join EQB as we continue to bring industry-leading asset management services to Canadian investors. We believe that a partnership with EQB will further accelerate our growth plans. We're excited to continue to service new and existing clients while generating leading product solutions under the EQB Inc. brand."

Combination provides immediate accretion, opportunities for accelerated growth

With a consistent record of generating income while protecting investor capital, ACM continues to see significant opportunities for growth:

• EQB is supportive of business expansion efforts of the ACM leadership given the strong record and continuing investor demand for alternative assets in Canada.
• ACM will further diversify EQB's earnings, with growth in fee-based revenue.
• EQB expects EPS (earnings per share) accretion from the acquisition within the year following transaction closing.
• ACM will add more than 2,000 client relationships, both investors and borrowers, to EQB.

ACM celebrates 30 years of growth and performance:

• Co-founded by Al Collings and Gord Allan in 1993, ACM has grown to be one of the largest alternative asset managers in its niche and provides consistent returns to its investors through strong risk management practices and conservative portfolio management strategies.
• Under the leadership of president and chief executive officer Chad Mallow and chief operating officer Chad Mercer (its second-generation executive team), ACM has nearly doubled its assets under management over the past five years.
• ACM is represented by approximately 40 employees in four offices, with a strong investor base that includes more than 200 institutional clients across Canada.
• Existing management will remain with the business, including Mr. Mallow and Mr. Mercer, both leaders of ACM for more than 10 years.
• ACM will operate as an independent majority-owned subsidiary of EQB.
• ACM represents an asset class well understood by EQB as the owner of Equitable Bank, which has a commercial loan portfolio of $28-billion (70 per cent of that invested in multiunit residential housing) and a proven lending approach and risk management.

Unanimous approvals given by all parties to the acquisition

The acquisition has been unanimously approved by the boards of directors of EQB, ACM and all shareholders of ACM.

Fully financed acquisition

EQB is leveraging cash to complete the acquisition (supported by existing lending facilities at EQB) and a de minimis number of EQB shares to be issued at closing at a price based on the volume-weighted average trading price. The issuance of any EQB shares is subject to Toronto Stock Exchange acceptance or approval.

Transaction advisers

McCarthy Tetrault LLP is acting as legal adviser to EQB, Borden Ladner Gervais LLP is acting as legal adviser to ACM, and Fort Capital Partners is acting as financial adviser to ACM.

Closing expected prior to end of calendar 2023

The acquisition is expected to close prior to end of calendar Dec. 31, 2023 (EQB's fiscal year 2024, which starts Nov. 1, 2023) and is subject to customary closing conditions and receipt of required regulatory approvals. EQB next reports Q4 and full-year fiscal 2023 results on Dec. 7, 2023.

"Wealth management, and the many market segments it represents, is strategic to EQB, and we believe this acquisition is directly on point for us with the underlying focus on Canadian commercial assets and providing exceptional service to customers. With these new capabilities, deep management team and dynamic range of long-term clients, this accretive acquisition will build on the diversification and momentum of EQB and the differentiated solutions we offer to Canadians. It addresses our goal of growing and diversifying fee-based revenue, and ACM aligns extraordinarily well to our risk appetite and approach to ROE [return on equity] and value creation," said Chadwick Westlake, chief financial officer of EQB.

Analyst conference call and webcast -- 9 a.m. Eastern Time today

EQB will host an investor call to discuss the acquisition today, Oct. 3, 2023, at 9 a.m. ET. The call will include Mr. Westlake.

To access the call live, please dial 416-764-8668 five minutes prior to the start time. The listen-only webcast with accompanying slides will be available EQB's website.

Call archive

A replay of the call will be available until Oct. 10, 2023, at midnight, at 416-764-8677 (passcode 929640 followed by the number sign). Alternatively, the webcast will be archived on EQB's website.

About EQB Inc.

EQB and its subsidiaries are driving change in Canadian banking to enrich people's lives. EQB trades on the TSX and has nearly $108-billion in combined assets under management and administration as of June 30, 2023. The wholly owned subsidiary of EQB, Equitable Bank, Canada's Challenger Bank, is the seventh-largest bank in Canada by assets and serves over 543,000 Canadians.

About ACM Advisors Ltd.

ACM Advisors is a leading Canadian institutional alternative asset manager with $4.8-billion in assets under management across four funds. Founded in 1993, ACM has grown to be one of the largest private investment fund managers in Canada, specializing in the creation, structuring and management of pooled Canadian commercial mortgage funds. Based in Vancouver, B.C., ACM has a 30-plus-year record of successful performance.

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