introduction to mrcc june 2016 (1)

Introducing Mackie Research Capital Corporation June 2016

History At A Glance

Mackie Research Capital Corporation traces its roots back to 1921 when wine merchant W. Harold Mara and Leigh M. McCarthy, past directors

of Manufacturers Life Insurance, founded Mara McCarthy Stock and Bond Brokers.

The new firm underwrote many notable Canadian companies, including Canada Malting and Hiram Walker Gooderham & Worts. Both Mara

and McCarthy were very involved in Toronto business and social circles: in 1930, Harold Mara was elected president of the Toronto Stock Exchange and was said to be one of the organization's most popular heads, while Leigh McCarthy served as a director of St. John's

Convalescent Hospital and the Ontario Jockey Club (now known as Woodbine Entertainment Group).

In 1941, the firm became Stanton, Hatch and McCarthy and was a primary distributor of the War Bonds and Victory Bonds used to support

Canadian troops in World War II. Becoming Andras, Hatch and Hetherington in 1962, the firm continued to earn its reputation as a leading

Canadian brokerage dealer whose founders were involved in the country's social welfare.

In 1962, founder Kenneth B. Andras (whose son, Kenneth W. Andras, is a director of the firm) led a delegation to NATO that helped negotiate the

Community of Nations blueprint and was also a founder of international relief organization C.A.R.E. Canada. The tradition of service to charity

continues. Throughout its history, the firm has employed many members of the Rotary Club of Toronto, four of whom have served as its President.

In 1985, a merger with the investment dealer Canavest House resulted in the firm Andras Canavest Hetherington Limited, whose four principals

remain with the firm to this day: Kenneth W. Andras, David C. Hetherington, Andrew C. Selbie, and Patrick G. Walsh. Shortly afterwards, the firm

merged with Research Securities of Canada and the highly-regarded Calgary office of the firm F.H. Deacon Hodgson.

In 1989, tradition evolved as the firm's name was changed to Research Capital Corporation, reflecting a multi-line capital markets and wealth

management platform.

On February 1, 2010 Research Capital Corporation and J.F. Mackie merged under the new name of Mackie Research Capital Corporation. The

combination of the two companies continued the wealth management and energy investment banking expansion of one of Canada's leading

entrepreneurial financial institutions.

On January 22, 2013 Mackie Research Capital Corporation completed the acquisition of NCP Northland Capital Partners – an investment dealer

focused in the junior resource sector in Canada, the US and the UK.

On December 2, 2014 Mackie Research Capital Corporation completed the acquisition of Calgary-based Jennings Capital Inc. – a wealth

management and investment banking firm with an established investment banking reputation in the upstream resource sector.

On June 19, 2015 Mackie Research Capital Corporation completed the acquisition of Vancouver-based Jordan Capital Markets Inc. – a high

growth private client investment and venture investment banking firm that also has an established Colombian-based investment banking

platform.

We are committed to building Mackie Research Capital Corporation into one of Canada's premier investment banks and asset managers.

2

MRCC Overview & Capabilities

Overview of MRCC

Recent Select Transactions

Investment banking professionals with capital

raising & M&A expertise, focused on industry

verticals that include:

• Mining & Energy

• Technology and Healthcare

• Diversified Industries

600+ Transactions led or co-managed since 2008;

Over $6 B in lead financings

$3.5 B Assets Under Management with 120+

Investment Advisors (Retail Brokers)

March 2015

$26,505,200

Bought Deal

Units

Lead Underwriter

February 2015

$483,000,000

Bought Deal

Sub. Receipts

Co-Manager

Overview of Locations

• Over 300 employees; principal offices in Toronto, Montreal,

Calgary, Edmonton, Regina and Vancouver

• Full-Service, Independent Investment Dealer

• Employee owned with over 90 years of operating history and a strong capital base

April 2015

$17,250,000

Bought Deal

Units

Lead Underwriter

May 2015

$67,275,000

Bought Deal

Units

Lead Underwriter

May 2015

$40,000,000

Bought Deal

Common Shares

Top Co-Manager

May 2015

$8,647,500

Bought Deal

Special Warrants

Lead Underwriter

May 2015

$70,629,012

Bought Deal

Units

Sole Bookrunner

100+ Companies under research coverage by 9

analysts

8 Dedicated institutional sales & trading

professionals

Equity research professionals

July 2015

$105,075,000

Bought Deal

Equity & Debt SRs

Co-Manager

9

9

3

MRCC Investment Banking League Table Standings

All Common Equity Deals – 2015 – Full Credit to Bookrunner

Top Independent Underwriter Of TSX Venture Listed Companies

Source: FP Infomart

Criteria:

1. Full Credit Bookrunner

2. All Common Equity Deals

3. Bought Deals Only

4. TSX Venture Exchange

5. Proceeds >$1.5M & < $100M

6. Period: Calendar Year 2015

Rank Underwriter Number of

Deals

Total Amount

($MM)

1 Mackie Research Capital Corporation 7 $146.84

2 National Bank Financial Inc. 5 $122.37

3 GMP Securities L.P. 5 $72.95

4 Cormark Securities Inc. 8 $64.39

5 Haywood Securities Inc. 3 $46.24

6 Macquarie Capital Markets Canada Ltd. 3 $42.87

7 Clarus Securities Inc. 2 $40.25

8 FirstEnergy Capital Corp. 1 $36.40

9 CIBC World Markets Inc. 1 $25.00

10 Dundee Securities Ltd. 2 $18.38

11 Salman Partners Inc. 2 $16.86

12 Cantor Fitzgerald, L.P. 1 $13.65

13 Canaccord Genuity Corp. 1 $12.28

14 TD Securities Inc. 1 $10.50

15 PI Financial Corporation 2 $7.32

16 Acumen Capital Finance Partners Limited 1 $7.19

17 Beacon Securities Limited 2 $7.04

18 Raymond James & Associates, Inc. 1 $5.50

19 Paradigm Capital Inc. 1 $2.87

4

MRCC Investment Banking League Table Standings

All Common Equity Deals – 2015 – Full Credit to Bookrunner

One of the Top Ranked Independent Investment Dealers For Capital Raising

Source: FP Infomart

Criteria:

1. Full Credit Bookrunner

2. All Common Equity Deals

3. Proceeds >$1.5M & < $100M

4. Period: Calendar year 2015

5. TSX & TSX Venture Exchanges

Rank Underwriter Number of

Deals

Total Amount

($MM)

1 Peters & Co. Limited 6 $363.02

2 Cormark Securities Inc. 18 $336.80

3 BMO Capital Markets 9 $288.79

4 GMP Securities L.P. 13 $238.53

5 Mackie Research Capital Corporation 12 $226.79

6 National Bank Financial Inc. 9 $225.28

7 RBC Capital Markets 7 $220.48

8 Canaccord Genuity Corp. 10 $197.18

9 Raymond James & Associates, Inc. 4 $181.35

10 CIBC World Markets Inc. 4 $173.31

11 Clarus Securities Inc. 6 $165.64

12 TD Securities Inc. 7 $136.20

13 Dundee Securities Ltd. 11 $131.99

14 Scotia Capital Inc. 3 $118.16

15 Macquarie Capital Markets Canada Ltd. 6 $101.63

16 Haywood Securities Inc. 9 $71.82

17 FirstEnergy Capital Corp. 2 $52.26

18 Laurentian Bank Securities Inc. 2 $45.01

19 Paradigm Capital Inc. 6 $36.14

20 Euro Pacific Canada, Inc. 7 $33.54

21 Beacon Securities Limited 6 $25.47

22 Salman Partners Inc. 3 $17.74

23 PI Financial Corporation 4 $16.67

24 Cantor Fitzgerald, L.P. 1 $13.65

25 Octagon Capital Corporation 1 $11.50

5

Institutional Distribution

• Strong relationships with a variety of institutional investors in North America and active relationships with U.K. & continental

European institutional investors

• Close contact between our Research Team and our Sales and Trading Team ensures that an issuer’s story is correctly

positioned and understood by the investment community

• Focused on small-to-mid cap stocks

• Agency model – no proprietary trading or prime brokerage – no scope for conflict with our clients

• Significant liquidity provider to many of Canada’s equity money managers

Institutional Distribution System Select Institutional Accounts

Powerful Institutional Equity Sales, Trading and Research Platforms

6

MRCC Sales, Trading & Equity Research

Institutional Equity Sales

Equity Research Distribution by Market Cap(1)

Institutional Equity Trading

• Institutional distribution to top tier accounts in Canada, the

US and across Europe

• Our professionals take an “analyst” approach to

understanding small to mid-cap growth and value names

• Accounts range from large mutual funds, to small industry-

focused investors

• Significant non-deal roadshow platform capabilities

• Experienced in marketed, overnight and bought-deal

corporate finance transactions

• Specialized in small to mid-cap stocks

• Focused on providing ongoing liquidity on MRCC “Focus

Names”

• Agency model, no proprietary trading or prime brokerage

Powerful Institutional Equity Sales, Trading and Research Platforms

(1) Small Cap includes market caps <$250 MM, Mid-cap includes market caps <$1,000 MM.

39

33

20

11

7

0

10

20

30

40

50

Mining Oil & Gas Special Sits Healthcare Technology

Large Cap

13%

Mid Cap

22%

Small Cap

65%

Equity Research Distribution by Sector

• Our success is based on the quality of research and our

powerful execution ability. Our research-driven sales team is

in constant communication with our clients and our analysts

and brings added value in the form of market intelligence

to issuers

• MRCC equity research coverage universe currently

includes 110 companies and continues to grow

7

MRCC Broader Market Transactions

8

September 2014

$23,000,000

Bought Deal

Common Shares

Co-Manager

November 2014

US$10,942,442

Marketed

Sub. Receipts

Co-Manager

May 2015

$20,000,000

Marketed

RTO

Co-Manager

November 2014

$10,585,197

Priv. Placement

Special Warrants

Sole Agent

October 2014

$30,406,030

Priv. Placement

Special Wrts & FT

Co-Manager

December 2014

$50,000,000

Marketed

IPO

Co-Manager

December 2014

$10,416,920

Marketed

Units

Co-Manager

December 2014

$87,000,000

Bought Deal

Common Shares

Co-Manager

January 2015

$5,300,000

Priv. Placement

Sub. Receipts

Co-Manager

February 2015

$483,000,000

Bought Deal

Sub. Receipts

Co-Manager

March 2015

$26,505,200

Bought Deal

Units

Lead Underwriter

April 2015

$17,250,000

Bought Deal

Units

Lead Underwriter

May 2015

$67,275,000

Bought Deal

Units

Lead Underwriter

May 2015

$40,000,000

Bought Deal

Common Shares

Top Co-Manager

May 2015

$8,647,500

Bought Deal

Special Warrants

Lead Underwriter

May 2015

$70,629,012

Bought Deal

Units

Sole Bookrunner

June 2015

$10,002,000

Bought Deal

Sub. Receipts

Co-Lead

June 2015

$12,500,000

Priv. Placement

Debentures

Top Co-Manager

July 2015

$105,075,000

Bought Deal

Equity & Debt SRs

Co-Manager

August 2015

$11,040,000

Marketed UW

Units

Co-Manager

September 2015

$26,270,000

Bought Deal

Common Shares

Co-Manager

July 2015

$11,504,025

Bought Deal

Units

Co-Manager

November 2015

$5,161,651

Marketed

Units

Co-Manager

April 2016

$10,305,125

Marketed

Units

Sole Agent

February 2016

$10,010,000

Bought Deal

Common Shares

Co-Manager

April 2016

$150,000,000

Bought Deal

Sub. Receipts

Co-Manager

June 2016

$10,360,350

Bought Deal

Units

Co-Manager

June 2016

$31,096,000

Bought Deal

Common Shares

Co-Manager

June 2016

$230,000,000

Bought Deal

Common Shares

Co-Manager

June 2016

$72,500,000

Bought Deal

Sub. Receipts

Co-Manager

June 2016

$8,002,500

Bought Deal

Units

Co-Lead

April 2016

$17,267,250

Bought Deal

Common Shares

Co-lead

MRCC Executive Leadership

Co-founder of Mackie Research Capital Corporation. The company was formed in 1990 after the acquisition of three other investment dealers over the course of the late 1980s. Has over a quarter century's worth of investment experience. Pat began his career at Dominion Securities in the 1970s. He has been Chief Executive Officer of Mackie Research Capital and its predecessors since 1984. Attended the University of Toronto, the London School of Economics, and the Wharton School of Finance where he obtained an MBA and Ph.D.

Patrick Walsh – Chairman and Chief Executive Officer

Geoffrey G. Whitlam – President

Geoffrey Whitlam is President of Mackie Research Capital Corporation and joined Research Capital as President in February 2004.

Prior to joining Research Capital, Geoffrey was a partner and National Director of the Investment Industry Practice at KPMG and later joined Yorkton Securities as COO.

Geoffrey holds a Bachelor of Commerce degree from University of Toronto and is a Chartered Accountant.

9

MRCC Executive Leadership

Barry Allan – Vice Chairman, Mining Group and Director

Barry Allan heads the mining group and is also Senior Mining Analyst. Barry joined the firm in 1997 and has over 27 years of experience. During his career, Barry has consistently ranked as one of the top ten gold and precious metals mining analysts in Canada. Barry began his career as an exploration geologist, spending 5 years in the field before becoming a mining specialist for CIBC. Prior to joining MRCC, Barry was a Gold and Precious Metals Mining Analyst with Gordon Capital, BZW, and Prudential Bache. Barry is a member of the Prospectors Developers Association, is a published author with the Geological Association of Canada and is a Fellow of the Institute of Canadian Bankers. Barry

holds a B.Sc. (Geology) degree and an MBA from Dalhousie University.

Andrew Selbie – Executive Vice President, Administration; Corporate Secretary; Chief Operating Officer; Chief Financial Officer

Andrew joined Research Capital in 1985 and was named COO in 2004. He has 37 years of investment industry experience.

Andrew has worked at a number of large integrated investment dealers including McLeod Young Weir and Pitfield MacKay Ross.

At Mackie Research Capital, Andrew is responsible for executing the growth strategy and managing financial operations. Andrew holds a CGA designation.

10

MRCC Capital Markets Management

David Keating – Managing Director, Equity Capital Markets; Co-Manager Capital Markets

David has worked extensively with Corporate clients from origination to execution, and after market support, in a wide variety of industries. Over the past 15 years, David has assisted corporate issuers raise more than $5 billion in new equity. Prior to joining Research Capital, David had been a member of the ECM group at Scotia Capital and First Associates (Blackmont). David holds a B.A. (Economics) degree from McGill University and an MBA from Concordia University.

11

Pat McCarthy – Managing Director, Institutional Equity Sales & Trading; Co-Manager Capital Markets

Pat McCarthy is the Managing Director of Institutional Equity Sales & Trading at Mackie Research Capital Corporation, with over 20 years of experience in the investment industry. Prior to joining the firm in June 2014, he worked at Beacon Securities, Fraser Mackenzie, BMO Nesbitt Burns, Merrill Lynch Canada, National Bank Financial, and Paradigm Capital. Pat's areas of expertise are Canadian small cap and micro-cap equities.

David Doritty – Deputy Chairman

David has over 30 years of investment banking and corporate finance experience within the Canadian capital markets. Prior to joining the firm in 2015, David was Vice President of Business Development at Aurion Capital where he overlooked the private client business. David has also held important roles at Dundee Capital Markets (Vice Chairman), First Marathon and NBF.

Focused Block Trading

MRCC strives to be a top 3 trader in all of its technology and healthcare focus names

Source: S&P Capital IQ, Thomson One, Institutional Trading Statistics, Includes Only Block Trades

Market Cap

(C$M)

3 Month

Vol Rank

6 Month

Vol Rank

12 Month

Vol Rank

125.6 1 56.6% 1 51.1% 1 56.3%

316.1 2 23.7% 2 35.3% 1 37.6%

78.3 1 88.6% 1 89.0% 1 70.3%

70.6 3 15.6% 2 26.0% 1 38.7%

70.7 1 78.6% 1 80.4% - -

90.2 1 84.0% 1 68.0% 1 63.7%

12

Broad Equity Research Coverage Universe M

eta

ls &

Min

ing

Analysts Selection of Companies Covered

Sp

ec

ial Situ

atio

ns


Barry Allan Vice Chair, Head of Mining

Precious Metals

Toronto

Ryan Hanley Mining Analyst

Precious Metals & Drillers

Toronto

Russell Stanley Vice President

Special Situations Analyst

Toronto

Douglas Ibbitson Analyst

Special Situations Analyst

Toronto

13

Broad Equity Research Coverage Universe O

il &

Ga

s


Tec

hn

olo

gy &

He

alth

ca

re


Bill Newman Senior Analyst

International Oil & Gas

Calgary

Andre Uddin Managing Director, Analyst

Health Care

Toronto

Nikhil Thadani Technology Analyst

Gaming & Software Toronto

14

Situation Overview

The Intertain Group Limited (“Intertain”) is an online

gaming company offering bingo and casino games

On June 4th, 2014, Intertain announced the acquisition of

Mandalay Media, and MRCC was the ‘top co-manager’

in the $104M financing to fund the acquisition

On Feb. 5th, 2015, Intertain announced an agreement to

acquire B2C assets from Gamesys for ~$810M. MRCC

co-managed the $483M equity financing

MRCC is a consistent top trader of Intertain stock

Our dedicated and focused institutional trading and sales

of Intertain has played a key role in providing liquidity in

the shares of Intertain

Institutional Trading Statistics

June 2014 – November 2015

Firm Rank Total Volume % of Total Volume

Canaccord Genuity Inc. 1 56,523,700 41.8%

Mackie Research Capital Corporation 2 21,326,842 15.8%

Dundee Securities Ltd. 3 11,398,000 8.4%

Cormark Securities Inc. 4 9,604,300 7.1%

Clarus Securities Inc. 5 6,858,700 5.1%

July 2014

$103,500,000

Bought Deal

Sub. Receipts

Top Co-Manager

Providing Dedicated Capital

Markets Support

Case Study: The Intertain Group Limited

February 2015

$483,000,000

Bought Deal

Sub. Receipts Co-Manager


0

1

2

3

4

5

6

7

$0

$5

$10

$15

$20

$25

6/2/14 10/9/14 2/19/15 6/29/15 11/6/15

Vo

lum

e (

in M

illio

ns)

Sto

ck P

ric

e

Nov 5, 2014:

MRCC’s

Vol: 610K

16% of total

Oct 22, 2014:

Vera&John

acquisition

announcement

Aug 20, 2014:

MRCC’s

Vol: 180K

12% of total

Jun 4, 2014:

Mandalay Media

acquisition

Announcement

Dec 30, 2014:

MRCC’s

Vol: 146K

18% of total

Feb 5, 2015: Gamesys acquisition

announcement & $483M Equity

Financing; MRCC co-manager

Jun 16, 2014:

Intertain launches

$90M bought

deal; MRCC ‘top

co-manager’

Jun 10, 2014:

MRCC’s

Vol: 184K

53% of total

May 8, 2015:

MRCC’s

Vol: 430K

19% of total

Jun 15, 2015:

MRCC’s

Vol: 148K

10% of total

Feb 10, 2015:

MRCC’s

Vol: 218K

21% of total Nov 24, 2015:

MRCC’s

Vol: 113K

16% of total

15

Situation Overview

theScore Inc. (“SCR”) creates mobile-first sports

experiences, including real-time news, scores, fantasy

information and alerts through mobile platforms

MRCC was sole lead and bookrunner in a $26.5M bought

deal financing for SCR, which closed in March 2015

MRCC is committed to making a market in SCR, as

evidenced by our after-market trading support

Our dedicated and focused institutional trading and sales

of SCR has played a key role in providing liquidity in SCR

stock

MRCC is the #1 institutional block trader of SCR


November 2014 – November 2015



Macquarie Capital Markets Ltd. 2 9,264,700 11.4%

Beacon Securities Ltd. 3 6,078,500 7.5%

TD Securities Inc. 4 2,160,000 2.7%

CIBC World Markets Inc. 5 1,382,000 1.7%

March 2015

$26,505,200

Bought Deal

Units

Lead Underwriter

Case Study: theScore Inc.


Markets Support


0

1

2

3

4

5

6

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

11/3/14 1/29/15 4/27/15 7/22/15 10/19/15

Vo

lum

e (

in M

illio

ns)

Sto

ck P

ric

e

Nov 20, 2014:

MRCC’s

Vol: 1.0M

30% of total

Dec 29, 2014:

MRCC’s

Vol: 1.3M

17% of total

Feb 12, 2015:

theScore launches

$20M bought deal

financing, upsized

to $26M; MRCC

‘Lead Underwriter’

Feb 5, 2015:

MRCC’s

Vol: 1.3M

23% of total

Mar 12, 2015:

MRCC’s

Vol: 1.4M

22% of total

May 22, 2015:

MRCC’s

Vol: 1.2M

39% of total

Jun 1, 2015:

MRCC’s

Vol: 580K

24% of total

Jul 7, 2015:

MRCC’s

Vol: 205K

7% of total

Aug 21, 2015:

MRCC’s

Vol: 600K

28% of total

Apr 27, 2015:

MRCC’s

Vol: 1.3M

27% of total

Oct 5, 2015:

MRCC’s

Vol: 250K

33% of total

Dec 16, 2015:

MRCC’s

Vol: 293K

28% of total

16

0

2

4

6

8

10

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

4/1/14 6/26/14 9/23/14 12/17/14 3/17/15 6/11/15 9/8/15 12/2/15

Vo

lum

e (

in M

illio

ns)

Sto

ck P

ric

e


May 2014 – December 2015



Dundee Securities Inc. 2 10,283,600 10.3%

TD Securities Inc. 3 8,663,600 8.7%

Laurentian Bank Securities Inc. 4 7,923,000 7.9%

National Bank Financial Inc. 5 4,971,500 5.0%

Situation Overview

Tribute Pharmaceuticals Canada Inc. (“Tribute”), a

specialty pharmaceutical company, is engaged in the

acquisition, licensing, development, and promotion of

healthcare products in Canada and internationally

MRCC launched research coverage on Tribute on April 9,

2014

We were able to offer Tribute a $30.0M bought deal and

were ‘top co-manager’ in the financing syndicate in July

2014

In June 2015, MRCC was a ‘top co-manager’ of a $12.5M

private placement financing of TRX debentures

MRCC is committed to making a market in TRX, as

evidenced by our after-market trading support

MRCC is the #1 institutional block trader of TRX

June 24, 2014:

Tribute launches

$30 MM overnight

marketed deal;

MRCC ‘top co-

manager’


Markets Support

Case Study: Tribute Pharmaceuticals Canada Inc.

Apr 9, 2014:

Andre Uddin initiates

coverage on Tribute

Apr 15, 2014:

MRCC’s

Vol: 100K

44% of total

May 27, 2014:

Tribute starts

trading on

the TSX-V

Jan 20, 2015:

MRCC’s

Vol: 3.1M

36% of total

Apr 8, 2015:

MRCC’s

Vol: 3.1M

36% of total


Jun 17, 2014:

MRCC’s

Vol: 340K

41% of total May 25, 2015:

MRCC’s

Vol: 1.6M

18% of total

June 2015

$12,500,000

Overnight Mkt’d

Debentures

Top Co-Manager

July 2014

$30,026,500

Overnight Mkt’d

Units

Top Co-Manager

Jul 16, 2015:

MRCC’s

Vol: 502K

19% of total

Jun 8, 2015:

MRCC’s

Vol: 2.9M

9% of total

Oct 19, 2015:

MRCC’s

Vol: 67K

14% of total

17

Contact

MACKIE RESEARCH CAPITAL CORPORATION

199 Bay Street, Suite 4500

Commerce Court West, Box 368

Toronto, ON M5L 1G2

T: (416) 860-7600

F: (416) 860-7671

18

introduction to mrcc june 2016 (1)

Economy & Finance