Richardson GMP IAs with 97 percent of AUA support the terms of GMP’s proposed acquisition of Richardson GMP

TORONTO, SEPTEMBER 15, 2020 – Richardson GMP Limited (“Richardson GMP” or the “Company”), a leading independent wealth management Company, announced today that Investment Advisors with approximately 97% of assets under administration support the terms of the previously announced transaction (the “RGMP Transaction”) under which 100% of the Company would be acquired by GMP Capital Inc. (“GMP”).

A list of Richardson GMP Investment Advisors, employees and leaders who have consented to have their names printed in support of the RGMP Transaction is provided at the end of this news release.

– Richardson GMP Investment Advisors, employees and leaders overwhelmingly support the RGMP Transaction
– Investment Advisors, the engine of future growth, will align their interests with GMP shareholders by owning 28.5% of GMP Capital on closing

Richardson GMP Investment Advisors overwhelmingly support the RGMP Transaction. Shareholders of GMP should disregard claims from a dissident GMP shareholder that he can renegotiate the RGMP Transaction and that he can gain the support of Richardson GMP’s Investment Advisors.

“Richardson GMP’s Investment Advisors believe that the RGMP Transaction is the best – by far the best – plan to optimally position the combined firms for future growth,” said Richardson GMP Investment Advisors Marc Dalpé and Neil Bosch, the Investment Advisor representatives on the Richardson GMP Board. “Our advisor partners believe the timing is perfect for growth in the business, with the wealth management industry poised for a wave of expansion and demand for exactly the kind of face-to-face advice that Richardson GMP provides.”

“The dissident’s plan does not have our support because it weakens the balance sheet and extends the period of uncertainty regarding our ownership. We as Investment Advisors have been advocating for the RGMP Transaction over a period of years. We believe the current terms, which were negotiated over many months, are a fair and balanced compromise. We simply don’t believe the dissident’s claim that he can now achieve terms that are more favourable for us. We are certain that if the RGMP Transaction is rejected, the outcome will be deadlock and downside risk to RGMP’s business as we expect Investment Advisors will leave for Richardson GMP’s competitors.”

Added Andrew Marsh, President and CEO of Richardson GMP, “Despite aggressive recruitment tactics by our competitors, our Investment Advisors remain loyal based on our history of success and the potential we have if the RGMP Transaction is approved. What we need now is a quick end to uncertainty regarding the ownership of Richardson GMP so that we can attract new colleagues and retain the Investment Advisors that we already have.”

“Our success is predicated on three key pillars – best advisors, powerful brand and a well-capitalized balance sheet . We will have those pillars if the RGMP Transaction proceeds and it will allow us to create significant long-term value for all shareholders by retaining and attracting the very best Investment Advisors and clients across Canada.”

As previously disclosed by GMP, the RGMP Transaction, if it proceeds, would see GMP increase its ownership of Richardson GMP to 100% from 33.2% through a share exchange. Richardson GMP’s Investment Advisors would collectively own approximately 28.5% of GMP on completion of the RGMP Transaction. As an expression of confidence, the Investment Advisors have agreed to place their GMP shares in escrow for three years.

Here is the list of Richardson GMP Investment Advisors, employees and leaders who have consented to have their names printed in support the RGMP Transaction.

We support the terms of the Richardson GMP Transaction.
So should all GMP Capital shareholders.

As Richardson GMP Investment Advisors, Employees and Leaders, we remain committed to our clients and our growth strategy.

We believe the Richardson GMP Transaction is the best – by far the best – plan for our collective future. It allows us to build an even better company as the destination of choice for Canada’s outstanding Advisors and their Clients for years to come.

[Click here to see LIST in attached Full press release]

About Richardson GMP
As one of Canada’s leading wealth management firms, Richardson GMP provides exclusive and innovative investment solutions to successful families and entrepreneurs across Canada. Since 2010, Richardson GMP has been awarded top rankings in the Investment Executive Brokerage Report Card for products and services dedicated to high net worth investors. Reflecting their commitment to high standards, Richardson GMP has earned certification – determined annually – from the Center for Fiduciary Excellence for their Separately Managed and Portfolio Management Account platforms. For the second consecutive year, Richardson GMP was recognized as a Great Place to Work™. For further information, please visit our corporate website at www.RichardsonGMP.com.

For further information please contact:
Richardson GMP Susan Fry (416) 943-6685 [email protected]