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GMP Capital Announces Completion of Sale of Capital Markets Business to Stifel

GMP CAPITAL INC. COMPLETES SALE OF CAPITAL MARKETS BUSINESS TO STIFEL FINANCIAL CORP.

• Marks the first step toward transforming GMP into a publicly traded pure-play wealth management firm
• Board of directors declares a one-time return of capital distribution in the amount of $0.275 per common share, previously approved by GMP’s common  shareholders on August 6, 2019
• GMP remains in discussions with Richardson Financial Group Limited to consolidate 100% of the ownership of Richardson GMP Limited

Toronto, December 6, 2019 - GMP Capital Inc. (GMP or the Company) (TSX: GMP) announced today that it has completed the sale of substantially all of its capital markets business to Stifel Financial Corp. (Stifel or the Purchasers) as previously announced on June 17, 2019 (the Sale Transaction).



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GMP Capital Announces Third Quarter 2019 Results

Toronto, November 8, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported a net loss of $25.4 million in third quarter 2019 compared with net income of $2.9 million in third quarter 2018.  The decline of $28.3 million was primarily due to an $18.0 million net loss from discontinued operations, which comprise substantially all of GMP's capital markets business. As previously announced, in August 2019 shareholders voted overwhelmingly in favor of the sale of substantially all of its capital markets business to Stifel Financial Corp. (Stifel) in an all cash transaction (the Sale Transaction).

  • Focused on closing the sale of capital markets business to Stifel Financial Corp., which remains on track to close in fourth quarter 2019
  • Focused on transforming GMP into a pure-play wealth management firm
  • Board of Directors approved a quarterly cash dividend of $0.025 per common share

For further information about GMP Capital Inc., our results for third quarter 2019 and the meaning of certain references, this earnings release should be read in conjunction with our unaudited interim condensed consolidated financial statements as at and for the three and nine months ended September 30, 2019 (Third Quarter 2019 Financial Statements) and our management's discussion and analysis for the three and nine months ended September 30, 2019 (Third Quarter 2019 MD&A) and our annual information form, which can be accessed on our website at gmpcapital.com and on SEDAR at sedar.com. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars and have been taken from our Third Quarter 2019 Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS).

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GMP to Announce Q3/19 Results and Conference Call

TORONTO, ON. (October 15, 2019) – GMP Capital Inc. (GMP) (TSX:GMP) will release its third quarter 2019 financial results on Friday, November 8, 2019, in a press release to be issued at approximately 6:00 a.m. (EST).

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GMP Announces Second Quarter 2019 Results

Toronto, August 9, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported a net loss from continuing operations of $3.8 million and revenue from continuing operations of $26.5 million in second quarter 2019.  On an adjusted basis1, net loss from continuing operations was $0.6 million in second quarter 2019 compared with net income of $5.0 million in second quarter 2018.


- On August 6, 2019, GMP's shareholders overwhelmingly approved the sale of substantially all of GMP's capital  markets business to Stifel Financial Corp. (the Sale Transaction) and the reduction of stated capital to permit a one-time return of capital distribution in the amount of $0.275 per common share

- Upon closing of the Sale Transaction, GMP intends to redeploy considerable capital toward accelerating the growth of its wealth management business

- The Board of Directors appointed Kish Kapoor as Interim President and CEO of GMP Capital Inc.

- Harris Fricker will continue as CEO of the Capital Markets business until closing of the Sale Transaction

- Board of Directors approved a quarterly cash dividend of $0.025 per common share

FINANCIAL HIGHLIGHTS FROM CONTINUING OPERATIONS

SECOND QUARTER 2019 vs SECOND QUARTER 2018

•          Revenue of $26.5 million decreased from $37.5 million.

•          Net loss of $3.8 million decreased from net income of $1.5 million.

•          On an adjusted basis1, net loss of $0.6 million decreased from net income of $5.0 million.

•          Diluted loss per share of $0.07 decreased from diluted earnings per share (EPS) of $0.01.

•          On an adjusted basis1, diluted loss per share of $0.02 decreased from EPS of $0.06. 

FIRST HALF 2019 vs FIRST HALF 2018

•          Revenue of $64.0 million decreased from $84.5 million.

•          Non-cash goodwill impairment charge of $28.5 million recorded in first quarter 2019.

•          Net loss of $26.7 million decreased from net income of $6.8 million.

•          On an adjusted basis1, net income of $6.2 million decreased from $13.6 million.

•          Diluted loss per share of $0.41 decreased from EPS of $0.06.

•          On an adjusted basis1, EPS of $0.05 decreased from $0.15. 


For further information about GMP Capital Inc., our results for second quarter 2019 and the meaning of certain references, this earnings release should be read in conjunction with our unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2019 (Second Quarter 2019 Financial Statements) and our management's discussion and analysis for the three and six months ended June 30, 2019 (Second Quarter 2019 MD&A) and our annual information form, which can be accessed on our website at gmpcapital.com and on SEDAR at sedar.com. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars and have been taken from our Second Quarter 2019 Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS).

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GMP CAPITAL INC ANNOUNCES SHAREHOLDER APPROVAL OF SALE OF ITS CAPITAL MARKETS BUSINESS

TORONTO, August 6, 2019 – GMP Capital Inc. (“GMP” or the “Company”) (TSX: GMP) is pleased to announce that, at the special meeting of holders (“Common Shareholders”) of the Company’s common shares (the “Common Shares”) held earlier today (the “Meeting”), Common Shareholders voted overwhelmingly to approve the special resolution (the “Transaction Resolution”) authorizing the previously announced sale of substantially all of the Company’s capital markets business to a subsidiary of Stifel Financial Corporation (the “Sale Transaction”). Common Shareholders also voted overwhelmingly to approve the special resolution (the “Stated Capital Reduction Resolution”) authorizing a reduction of the stated capital of the Common Shares by $0.275 per Common Share (approximately $20.7 million in the aggregate) to permit a special distribution of equal amount to be paid to Common Shareholders, contingent upon the completion of the Sale Transaction.

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GMP to Announce Second Quarter 2019 Results

TORONTO, ON. (July 17, 2019) – GMP Capital Inc. (GMP) (TSX:GMP) will release its second quarter 2019 financial results on Friday, August 9, 2019, in Toronto.  Second quarter results are expected to be released at approximately 6:00 a.m. (EST).

SECOND QUARTER 2019 CONFERENCE CALL

A conference call and live audio webcast to discuss GMP’s second quarter 2019 results will be held that morning at 10:00 a.m. (EST).  Interested parties are invited to access the quarterly conference call on a listen-only basis by dialing 416-204-1547 or 1-866-215-0058 (toll free), or via live audio webcast at http://gmpcapital.com/Investor-Relations/Quarterly-Information.

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GMP Announces Mailing of Special Meeting Materials and Future Leadership Transition


GMP CAPITAL INC. ANNOUNCES MAILING OF MEETING MATERIALS FOR SALE OF ITS CAPITAL MARKETS BUSINESS AND FUTURE LEADERSHIP TRANSITION

TORONTO, July 10, 2019 – GMP Capital Inc. (“GMP” or the “Company”) (TSX: GMP) announced today that it has commenced mailing the management information circular (“Information Circular”) to the holders (“Common Shareholders”) of the Company’s common shares (“Common Shares”) in connection with the special meeting (the “Meeting”) of Common Shareholders to approve the sale of substantially all of the Company’s capital markets business to Stifel Financial Corporation (“Stifel”) (the “Transaction”). The Meeting will be held on August 6, 2019 at 10:00 a.m. at the offices of Stikeman Elliott LLP at 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario, M5L 1B9. The Information Circular has also been filed under the Company’s profile on SEDAR at www.sedar.com and is available on the Company’s website at gmpcapital.com.

YOUR VOTE IS IMPORTANT ‐ PLEASE VOTE TODAY. Your vote is important regardless of the number of Common Shares you own. Common Shareholders are encouraged to read the Information Circular in detail.

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GMP Capital Announces Sale of Capital Markets Business

GMP CAPITAL INC. ANNOUNCES SALE OF CAPITAL MARKETS BUSINESS TO STIFEL FINANCIAL CORPORATION

TORONTO, June 17, 2019 – GMP Capital Inc. (“GMP” or the “Corporation”) (TSX: GMP) announced today that it has entered into a definitive agreement (the “Agreement”) to sell substantially all of its capital markets business to Stifel Financial Corp. (“Stifel”) (the “Transaction”) in an all cash transaction.

The entering into of the Agreement follows a comprehensive strategic review process overseen by a committee of GMP’s board of directors (the “GMP Board”) comprised exclusively of independent directors (the "Special Committee"). In its review, the Special Committee considered numerous alternatives and recommended to the GMP Board that the Transaction is in the best interest of the Corporation.

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GMP Announces Election of Directors

TORONTO, ON. (May 2, 2019) – GMP Capital Inc. (GMP) (TSX: GMP or the Company) today announced that the nine nominees listed in the Company’s management information circular (the Circular) dated March 22, 2019, were elected as directors of GMP. The detailed results of the vote for the election of directors held at GMP’s Annual Meeting of Common Shareholders (the Meeting) on Thursday, May 2, 2019, in Toronto, Ontario, are set out below.

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GMP Reports Q1/19 Results

Toronto, May 2, 2019 - GMP Capital Inc. (GMP) (TSX: GMP) today reported a net loss from continuing operations of $22.9 million primarily due to a $28.5 million non-cash goodwill impairment charge in our Capital Markets segment recorded in first quarter 2019. Revenue from continuing operations was $37.5 million in first quarter 2019.  On an adjusted basis1, net income from continuing operations was $6.8 million in first quarter 2019 compared with net income of $8.6 million in first quarter 2018.

On a consolidated basis, GMP recorded a net loss of $15.5 million in first quarter 2019 compared with net income of $4.1 million in first quarter 2018.  The decline in performance was primarily due to the non-cash goodwill impairment charge recorded in first quarter 2019.  Additionally, first quarter 2019 included an $8.3 million non-cash gain relating to reclassification of cumulative foreign currency translation adjustments in connection with the sale of discontinued operations.  On an adjusted basis1, GMP recorded net income of  $14.2 million in first quarter 2019 compared with net income of $7.3 million in first quarter 2018.

“We delivered adjusted earnings from continuing operations of nearly $7 million this quarter despite a challenging business environment for capital raisings in first quarter 2019, which contributed to weaker performance in our underwriting franchise.  Revenue from principal transactions rebounded significantly from the immediately preceding quarter and we grew advisory revenue by 8% year-over-year, driven largely by continued momentum in the cannabis sector.  In Wealth Management, our partners at Richardson GMP reported another solid quarterly performance, increasing net income by 12% this quarter compared with the first quarter last year," said Harris Fricker, President and CEO of GMP.

Commenting further, Fricker said "We also remain encouraged that our efforts on the cost side of the business continue to benefit our bottom line.  In particular, the ratio of employee compensation to revenue is at its lowest level in over a decade.  GMP remains on the right path with strong franchises in both Canadian capital markets and wealth management."

-    First quarter 2019 results affected by non-cash goodwill impairment charge
-  Adjusted net income1 from continuing operations was $6.8 million in first quarter 2019 and adjusted diluted earnings per share from continuing        operations was $0.07
-  Board of Directors approved a quarterly cash dividend of $0.025 per common share

FINANCIAL HIGHLIGHTS

Continuing Operations

First Quarter 2019 vs. First Quarter 2018

•          Revenue of $37.5 million decreased from $47.0 million.
•          Non-cash goodwill impairment charge of $28.5 million recorded in first quarter 2019.
•          Net loss of $22.9 million decreased from net income of $5.4 million.
•          On an adjusted basis1, net income of $6.8 million decreased from $8.6 million.
•          Diluted loss per share of $0.34 decreased from diluted earnings per share (EPS) of $0.06.
•          On an adjusted basis1, EPS of $0.07 decreased from $0.10.
•          Adjusted return on equity (ROE)1 of 12.6% decreased from 18.3%

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