Stonecap Securities Inc.



Stonecap Securities Inc.

January 27, 2014 16:06 ET

Stonecap Securities Inc. Agrees to Be Acquired by Edgecrest Capital to Expand Canada's Newest Independent Boutique Dealer

TORONTO, ONTARIO--(Marketwired - Jan. 27, 2014) - Stonecap Securities Inc. is pleased to announce that it has signed a definitive agreement whereby Stonecap Securities Inc. ("Stonecap") and SCS (USA) Inc. (Stonecap's FINRA subsidiary member dealer), will be acquired by Edgecrest Capital Corporation ("Edgecrest"). Stonecap will be amalgamated into Edgecrest and SCS (USA) Inc. will be renamed and operate under the Edgecrest banner. The transaction is expected to close on or about February 18, 2014, subject to the receipt of regulatory approvals.

"In what has been a difficult environment for all independent dealers, the acquisition of Stonecap by Edgecrest is a great outcome for all Stonecap stakeholders including its clients, employees and shareholders. The transaction is truly complimentary for both firms. Stonecap clients will benefit from Edgecrest's exceptional investment banking expertise and its robust transaction pipeline, together with an enhanced distribution capabilities and a more targeted, idea-focused approach to research. For Edgecrest, the acquisition of Stonecap will meaningfully accelerate its growth, expand its client relationships, and give it additional diversification into more industry verticals," said Jeffrey White, President and CEO of Stonecap.

"We have clearly heard from our clients that they would welcome the emergence of a stronger, high quality and more diverse platform through consolidation of the independent dealer community. We are very happy to have been able to respond to our clients and reach this agreement with Edgecrest. The combined entity will be a low-cost independent platform with strong investment banking skills and a lean sales and trading desk. We are very excited to be a part of the Edgecrest team going forward," continued White.

Edgecrest was founded in mid-2013 by a group of proven independent boutique firm builders led by David Beatty, Edgecrest's Chairman and CEO. Edgecrest aims to be a top 3 independent Canadian investment dealer within its first 5 years. The combined team will be made up of experienced former partners and senior employees from Canaccord Genuity, GMP Securities, UBS Warburg Canada, Westwind Partners/ Thomas Weisel Partners Canada and will include approximately 10 Stonecap professionals.

"I want to thank all of Stonecap's clients and employees for their continued support as we enter a new phase in our development as part of the Edgecrest team. I would also like to extend my sincere thanks to Tom Caldwell and Urbana Corp., Stonecap's largest shareholder. Urbana's support enabled us to launch Stonecap in 2010 and they have been great partners in our journey to this point. On a personal note, Tom Caldwell has been a great mentor and friend of mine and I can't thank him enough for his guidance and wisdom over these last four years," said White.

Stonecap Securities is an independent Canadian boutique dealer which was formed from the institutional division of Blackmont Capital. Stonecap provides a full range of services including investment banking, equity sales & trading, and research products to corporate and institutional clients. Edgecrest Capital Corporation is a member of The Investment Industry Dealers Association of Canada. Stonecap's US subsidiary, SCS (USA) Inc., is a US FINRA member dealer.

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