Mr. Dan Daviau reports

CANACCORD GENUITY GROUP INC. THROUGH ITS AUSTRALIAN OPERATION ANNOUNCES ACQUISITION OF PATERSONS SECURITIES LIMITED

Through its Australian operation, Canaccord Financial Group (Australia) Pty. Ltd., Canaccord Genuity Group Inc. has agreed to acquire Patersons Securities Ltd., a premier independent Australian securities business with operations in wealth management and capital markets.

"This transaction builds upon the work that our Australian partners have done to make Canaccord Genuity an increasingly stronger competitor in Australia," said Dan Daviau, president and chief executive officer of Canaccord Genuity Group. "The addition of Patersons supports our strategy of substantially increasing the scale of our wealth management operations and improving our business mix to deliver greater stability and long-term value for our clients and our shareholders. We look forward to supporting continued growth in Australia."

"This business combination creates a leading Australian capital markets, stockbroking and wealth management business with a powerful offering for our respective corporate, institutional and private clients," said Marcus Freeman, chief executive officer of Canaccord Genuity Australia. "The cultural alignment between the two teams has been clear from our first interaction and has been the foundation for all discussions. We are delighted to welcome Patersons's outstanding team of professionals to our firm and we look forward to working together to deliver enhanced services and opportunities for our combined client base."

Michael Manford, executive chairman of Patersons, said: "The rationale for joining Canaccord Genuity is compelling and provides additional breadth and depth of services for our clients, who will benefit from access to globally integrated wealth management, corporate finance and equity research capabilities. Most importantly, the Patersons and Canaccord Genuity Australia teams place a high value on employee partnership and lasting client relationships."

Senior management of Patersons will continue to have significant involvement and influence in driving the growth and development of the combined business. Canaccord Genuity Australia's wealth management business will be known as CG Patersons, and Michael Manford, Patersons's executive chairman, will be the executive chairman of CG Patersons.

For the year ended June 30, 2018, Patersons earned net revenue of $57.7-million ($61.8-million (Australian)) and net income of $3-million ($3.2-million (Australian)). After a difficult first half, Patersons is expected to be break-even for the year ended June 30, 2019, with annualized net revenue of approximately $48-million ($52-million (Australian)). The wealth management business of Patersons has more than 100 investment advisers with $12.6-billion ($13.6-billion (Australian)) in client assets under advice.

Transaction overview

The transaction will be implemented by a scheme of arrangement under the Corporations Act. Canaccord Genuity Australia and Patersons have entered into a scheme implementation agreement (SIA). Implementation of the transaction is subject to various conditions, including Patersons's shareholder approval, court approval, regulatory approvals, an independent expert concluding that the transaction is in the best interests of Patersons shareholders, satisfactory completion of due diligence by Canaccord Genuity and other customary conditions.

Patersons's directors and senior management, representing 60 per cent of Patersons shareholders, have confirmed that they will be voting in favour of the scheme and Patersons's directors unanimously recommend that Patersons shareholders vote in favour of the proposed transaction (in each case, in the absence of a superior proposal and subject to the independent expert concluding that the transaction is in the best interests of Patersons shareholders).

Cash consideration of $25-million (Australian) (23.55 Australian cents per share; $23.3-million) will be payable on closing (1.5 cents per share escrowed). Following the closing of the transaction, Canaccord Genuity will implement an equity incentive program for key Patersons employees. The objectives of the plan are to increase employee stock exposure and provide a link between strategic objectives, market practice, and the established culture of ownership and entrepreneurialism while attracting, motivating and retaining employees.

A meeting of Patersons shareholders to vote on the transaction is expected to be held in October, 2019. The acquisition is expected to be completed during the quarter ended Dec. 31, 2019, which will be the third quarter of Canaccord Genuity Group's 2020 fiscal year.

Canaccord Genuity has been advised by EM Advisory and Allens and Patersons has been advised by Clayton Utz.

About Patersons Securities Ltd.

Founded in 1903, Patersons Securities has become one of Australia's premier financial services firms, offering comprehensive investment management, financial planning, stockbroking advice and execution services for Australian mass-affluent investors. Patersons also engages in corporate finance activities, providing debt and equity solutions for emerging small-cap and mid-cap companies in Australia, complemented by institutional dealing capabilities serving domestic, Asian and other international institutional clients investing in Australia.

About Canaccord Genuity Wealth Management

The wealth management operations of the Canaccord Genuity group provides comprehensive wealth management solutions and brokerage services to individual investors, private clients, charities and intermediaries through a full suite of services tailored to the needs of clients in each of its markets.

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. The company has wealth management offices located in Canada, the United Kingdom, Guernsey, Jersey, the Isle of Man and Australia.