Toronto, Ontario--(Newsfile Corp. - July 23, 2021) - Canaccord Genuity G Ventures Corp. (NEO: CGGV.UN) ("CGGV") is pleased to announce the closing (the "Closing") of its initial public offering (the "Offering") of 5,000,000 Class A restricted voting units of CGGV (the "Class A Restricted Voting Units") at an offering price of $3.00 per Class A Restricted Unit for gross proceeds of $15,000,000. CGGV has granted the Underwriters (as defined below) a 30-day option following closing of the Offering to purchase up to an additional 750,000 Class A Restricted Voting Units, at a price of $3.00 per Class A Restricted Voting Unit (the "Over-Allotment Option") for additional gross proceeds of up to $2,250,000 to cover over allotments. The gross proceeds from the Offering were (and the proceeds from any exercise of the Over-Allotment Option will be) deposited into an escrow account pending completion of a qualifying transaction by CGGV and will only be released upon certain prescribed conditions, as further described in CGGV's final prospectus dated July 13, 2021 (the "Final Prospectus").
Each Class A Restricted Voting Unit is comprised of a Class A restricted voting share (a "Class A Restricted Voting Share") and one-half of a share purchase warrant (each whole warrant being referred to as a "Warrant"). Each Warrant will entitle the holder to purchase one common share of CGGV (a "Common Share") for a purchase price of $3.45, commencing 30 days after the completion of its qualifying transaction, and will expire on the day that is five years after the closing date of the qualifying transaction or earlier. Prior to any qualifying transaction, the Class A Restricted Voting Shares and Warrants comprising the Class A Restricted Voting Units will trade as a unit. Each Class A Restricted Voting Unit will separate following the closing of the qualifying transaction into one Common Share and one-half of a Warrant. Following completion of the qualifying transaction, (i) the Class A Restricted Voting Shares will convert into Common Shares and (ii) the Common Shares and the Warrants will separate and trade separately.
The Class A Restricted Voting Units will commence trading today on the Neo Exchange Inc. under the symbol CGGV.UN. The Class B shares in the capital of CGGV (the "Class B Shares") issued to CG G-Corp (as defined below) and certain directors of CGGV will not be listed prior to the qualifying transaction, as described in the Final Prospectus.
The Offering was distributed by Canaccord Genuity Corp. and Cormark Securities Inc. as co-lead underwriters and joint bookrunners (collectively, the "Underwriters").
The sponsor of CGGV is CG G-Corp Sponsor Inc. I ("CG G-Corp"), a wholly-owned subsidiary of Canaccord Genuity Group Inc. and an affiliate of Canaccord Genuity Corp. ("Canaccord Genuity"). Concurrent with the Closing, CG G-Corp purchased 4,883,333 share purchase warrants (the "Founders' Warrants") at an offering price of $0.30 per Founders' Warrant, for an aggregate purchase price of $1,465,000. Except as otherwise disclosed in the Final Prospectus, the Founders' Warrants are subject to the same terms and conditions as the Warrants underlying the Class A Restricted Voting Units. When aggregated with existing shares owned by CG G-Corp, CG G-Corp owns 1,392,500 Class B Shares and 4,883,333 Warrants, representing an approximate 96.9% interest in the Class B Shares and approximately 19.4% of the total Class A Restricted Voting Shares and Class B Shares, taken together, assuming full exercise of the Over-Allotment Option and no relinquishment by the Sponsor of any of its Class B Shares.
CG G-Corp's position in CGGV was acquired for investment purposes. CG G-Corp is restricted from selling its Class B Shares and Founders' Warrants, as described in the Final Prospectus. CG G-Corp may purchase and/or sell any Class A Restricted Voting Units it acquires from time to time, subject to applicable law. In connection with the Offering, and as Sponsor to CGGV, CG G-Corp entered into certain material agreements, all as described in the Final Prospectus.
CGGV's head and registered offices are located at 161 Bay Street, Suite 3000, Toronto, Ontario M5J 2S1. CG G-Corp's head and registered offices are located at 161 Bay Street, Suite 3000, Toronto, Ontario M5J 2S1.
Wildeboer Dellelce LLP is acting as legal counsel to CGGV and CG G-Corp. Blake, Cassels & Graydon LLP is acting as legal counsel to the Underwriters.
This press release is not an offer of securities for sale in the United States, and the securities may not be offered or sold in the United States absent registration or an exemption from registration. The securities have not been and will not be registered under the United States Securities Act of 1933.
About Canaccord Genuity G Ventures Corp.
CGGV is a newly organized growth-focused special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purpose of effecting a qualifying transaction within a specified period of time.
About CG G-Corp Sponsor Inc. I
CG G-Corp is the sponsor of CGGV. CG G-Corp is a wholly-owned subsidiary of Canaccord Genuity Group Inc., a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: capital markets and wealth management.
This press release may contain forward‐looking information within the meaning of applicable securities legislation, which reflects CG G-Corp's and CGGV's current expectations regarding future events. Forward‐looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond CG G-Corp's or CGGV's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward‐looking information. Such risks and uncertainties include, but are not limited to, failure to complete a qualifying transaction and the factors discussed under "Risk Factors" in the Final Prospectus, a copy of which is available on SEDAR at www.sedar.com. Neither CG G-Corp nor CGGV undertake any obligation to update such forward‐looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canaccord Genuity G Ventures Corp.
Chief Executive Officer
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