Newspaper article The Canadian Press

Canaccord Genuity's Q3 Earnings Get Huge Lift from Cannabis, Blockchain

Newspaper article The Canadian Press

Canaccord Genuity's Q3 Earnings Get Huge Lift from Cannabis, Blockchain

Article excerpt

Canaccord gets Q3 lift from cannabis, blockchain

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TORONTO - Canaccord Genuity's third-quarter earnings got a major lift from a flurry of deals in the Canadian cannabis sector, which helped the investment bank see its net income rise more than 500 per cent year-over-year.

The Toronto-based financial services and advisory firm reported adjusted net income before taxes of $50.3 million for the three-months ended December 31, compared to $7.8 million during the same period in 2016.

That works out to earnings per share for the fiscal third quarter of $0.31, well above the $0.17 expected by analysts surveyed by Thomson Reuters.

It also earned revenue of $309.4 million, marking a record for the organization.

"Canaccord Genuity was the leading independent investment bank in Canada for calendar 2017 by a wide margin for both number of transactions and total amount raised, and this business continues to be active with numerous transactions in the blockchain and cannabis sectors," said its chief executive officer Dan Daviau in a letter to shareholders.

Daviau said the primary driver was its capital markets division, which participated in 141 transactions globally including several large transactions in the marijuana sector for companies such as Aurora Cannabis Inc.

The investment bank was also kept busy by growing interest in blockchain, participating in transactions for firms such as Global Blockchain Technologies.

But financing activity was particularly brisk in the cannabis sector as firms raised cash to gear up for the legalization of the drug for recreational use in Canada later this year. …

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