Saturday, August 2, 2025

Latest

Canaccord Shares Crash As Investigation Casts Doubts Over Buyout Plans

Canaccord Genuity Group (TSE: CF) cautioned that an “ongoing regulatory matter” at one of its international companies may prevent it from obtaining fast approval for a management buyout.

A group of Canaccord senior executives has offered to take the banking firm private for $11.25 per share, but regulators’ approval will not be granted quickly, the company said Monday in a statement.

That implies the takeover is unlikely to be completed by the current deadline of June 13, and there is no certainty it will be completed before financial obligations expire on August 9, according to the firm.

“The underlying regulatory matter, which arose in the company’s capital-markets business and has been ongoing in the ordinary course, is unrelated to the management offer,” the Canadian firm said. 

Following the news, Canaccord shares cratered nearly 14%, erasing most of the gains it sustained early in January 2023 when the buyout deal was first announced.

So far, the management offer, led by CEO Dan Daviau and Chairman David Kassie, has been everything but seamless. A special committee of directors refused to support it, citing a Royal Bank of Canada analysis that valued the business higher. Under pressure from a major shareholder, those directors eventually resigned, and a new special committee of the board was formed.

The management bid, which values Canaccord at more than $1.1 billion (US$825 million), is still being evaluated by that committee. It will also explore asset sales after the management buyout group agreed to drop a bid condition that barred the sale of any significant portion of the company.

Concerns about regulatory approval also caused Toronto-Dominion Bank Group to abandon its $13.4 billion merger of First Horizon Corp last week.


Information for this briefing was found via Sedar, Bloomberg, Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Royal Gold Goes Big | $3.5 Billion Sandstorm Acquisition

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Canaccord Cuts 7% of Canadian Workforce

Canaccord Genuity (TSX: CF) has announced a significant workforce reduction in Canada, cutting approximately 75...

Monday, August 7, 2023, 02:19:00 PM

Canaccord Genuity Sees Management Buyout Offer Expire

The management takeover of Canaccord Genuity (TSX: CF) appears to now be off the table,...

Wednesday, June 14, 2023, 09:23:19 AM

Canaccord Genuity Reportedly Suspends Cannabis Coverage

Investment bank Canaccord Genuity has reportedly suspended research coverage of 15 cannabis companies following an...

Monday, July 21, 2025, 12:54:00 PM

Shroom Rush? Champignon Announces $10M Bought Deal

This afternoon Champignon Brands Inc. (CSE: SHRM) announced they entered into an agreement on a...

Monday, May 11, 2020, 05:03:14 PM

Trulieve Sees Canaccord Maintain $35 Price Target Days Before Share Unlock

Trulieve Cannabis (CSE: TRUL) this morning saw Canaccord Genuity reaffirm its speculative buy rating on...

Wednesday, May 13, 2020, 11:20:52 AM