Full service investment dealer Canaccord Capital Corp and Manulife Financial have reached an agreement that will see Manulife take ownership of up to 20% of the issued and outstanding shares of Canaccord.

Under the agreement, Manulife will acquire treasury shares representing approximately 13% of the issued and outstanding shares of Canaccord, as well as a convertible subordinated debenture which, when converted, will represent the remaining of total ownership stake.

The investment will occur through Manulife Capital, Manulife’s merchant banking arm, and is subject to satisfactory documentation and receipt of all regulatory approvals.

“Our new relationship with Manulife will help fuel our growth,” says Peter Brown, Canaccord chairman and CEO. “However, we will continue to maintain our independence. We believe that being an independent employee-owned investment dealer provides the flexibility for our sales force to offer the best products for Canaccord clients. In addition, as the largest independent, we are attractive for those investment advisors seeking alternatives to the bank-owned investment dealers.”

Michael Greenwood, Canaccord president and COO adds, “Proceeds will be used to fund additional acquisitions, expand our clearing brokerage business, and materially expand our products and service offerings for our wealth management clients.”

“Manulife’s relationship with Canaccord is first and foremost a portfolio investment, and does not represent a foray into the brokerage business,” says Warren Thomson, senior vice president, Investments at Manulife. “The relationship with Canaccord will add to Manulife’s existing and well established distribution channels.” Manulife is a provider of life insurance and investment products to all the major investment dealers, to financial planners, and to independent investment agents.