Toronto, April 30, 2020 - GMP Capital Inc. (GMP) (TSX: GMP) today reported a net loss from continuing operations of $3.0 million in first quarter 2020 compared with net income of $0.2 million in first quarter 2019. The $3.2 million change from first quarter last year was due largely to several factors including:
“Our top priority this quarter, before the current and severe public health crisis, was to complete the Potential RGMP Transaction we announced on February 26, 2020,” said Kish Kapoor, Interim President and CEO of GMP. “However, once it was clear that we were in the midst of a prolonged pandemic, we made the responsible decision to defer the transaction and shifted our priority to assisting our clients, partners and employees in navigating the unprecedented health and safety challenges and heightened volatility in financial markets. Our results this quarter reflect the impact of both these events,” added Kapoor.
For further information about GMP Capital Inc., our results for first quarter 2020 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 months ended March 31, 2020 (First Quarter 2020 Financial Statements) and our management's discussion and analysis for the three months ended March 31, 2020 (First Quarter 2020 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 First Quarter 2020 Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS).
TORONTO, ON. (April 14, 2020) – GMP Capital Inc. (“GMP” or the “Company”) (TSX: GMP) today provided an update on the previously announced transaction (the “Potential RGMP Transaction”) to consolidate the ownership of Richardson GMP Limited (“Richardson GMP”). Pursuant to the Shareholders' Agreement governing Richardson GMP and in light of the COVID-19 pandemic, all three of Richardson GMP’s shareholder groups, being GMP, Richardson Financial Group Limited (“RFGL”) and the two elected investment advisor representatives on the board of Richardson GMP, have agreed to extend the 30 day contractual negotiation period between GMP and RFGL, that was set to expire on April 16, 2020, to 60 days following the date that the Declaration of Emergency ordered by the Lieutenant Governor of Ontario, and any similar or replacement orders thereto, have been withdrawn or terminated by the Government of Ontario.
The parties are continuing to work toward entering into a definitive agreement and remain hopeful that they will do so in the future. The Company cautions its shareholders and other stakeholders that there is no assurance that any transaction involving Richardson GMP will result from these discussions or on what terms or structure any transaction may occur.
The Shareholders Agreement governing Richardson GMP, including material aspects of the RGMP liquidity mechanism that was triggered on February 25, 2020, is available on the SEDAR profile of GMP at www.sedar.com.
GMP also announced today that it intends to release its first quarter 2020 financial results on Thursday, April 30, 2020. Financial results are expected to be released at approximately 6:00 a.m. (EST).