/NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 1, 2017 /CNW/ – Canaccord Genuity Acquisition Corp. (“CGAC” or the “Corporation“) is pleased to announce the closing (the “Closing“) of its initial public offering (the “Offering“) of $30,000,000 of Class A Restricted Voting Units. CGAC has granted the underwriters an over-allotment option to purchase up to an additional 1,500,000 Class A Restricted Voting Units on the same terms and conditions, exercisable in whole or in part up to 30 days following closing of the Offering (the “Over-Allotment Option“). The proceeds from the distribution of the Class A Restricted Voting Units (along with the proceeds from any exercise of the Over-Allotment Option granted by the Corporation) were deposited into an escrow account and will only be released upon certain prescribed conditions, as further described in the final prospectus dated July 24, 2017 (the “Final Prospectus“).
The sponsor of CGAC is CG Investments Inc. (“CGII“), a wholly-owned subsidiary of Canaccord Genuity Group Inc. CGAC is a newly organized special purpose acquisition corporation formed for the purpose of effecting an acquisition of one or more businesses. CGAC intends to target a growth company with an enterprise value of between $50 million and $250 million for its qualifying acquisition (the “QA“), although there is no limit on the size, industry or geographic region of the acquisition. The acquisition target is expected to be an operating business that would benefit from being a public company.
Each Class A Restricted Voting Unit has an offering price of $3.00 per Class A Restricted Voting Unit and consists of one Class A Restricted Voting Share and one Warrant. Prior to any QA, the Class A Restricted Voting Shares and Warrants will trade as a unit and may only be redeemed as a unit. On or following completion of the Corporation’s QA, each Class A Restricted Voting Share (unless previously redeemed) and each Class B Share of the Corporation would be automatically converted into one Common Share. Each Warrant will entitle the holder to purchase one Common Share of CGAC for a purchase price of $3.45 commencing 30 days after the closing date of CGAC’s QA and will expire five years after the closing date of such QA. Upon certain events, the Class A Restricted Voting Units will be redeemable by holders for a pro‐rata portion of the escrow account, net of taxes payable and…