Canaccord Capital Inc. has completed a block trade of shares to implement a new employee share incentive program that was previously announced at the end of fiscal third quarter 2005.
The sale was made on August 12, through the facilities of the Toronto Stock Exchange,
Canaccord says 1,798,500 common shares were sold at a price of $9.50 per share to senior managers of the company.
Canaccord’s forgivable loan to senior managers to fund part of the purchase price is to be amortized and forgiven over four years in parallel with the four year date restriction associated with the program, where one quarter of the holdings will be released at each anniversary of the transaction.
Canaccord employees and directors now own approximately 59.5% of the issued common shares of the company.
To ensure a sufficient amount of shares would be available for the new incentive program, Canaccord requested certain shareholders to sell a portion of their shares. Manulife Financial Corp., a significant shareholder of the company, sold 700,000 common shares. As a result, Manulife now holds 5,328,369 common shares, representing 11.56% of the issued common shares.
Peter Brown, chairman & CEO of Canaccord, sold 75,000 common shares. As a result, Brown now holds 2,127,979 common shares, representing 4.61% of the issued common shares of Canaccord.