Cervus Equipment Corporation Closes $34.5 Million Public Offering of Convertible Debentures


Symbol: CVL (TSX)

CALGARY, July 24, 2012 /CNW/ - Cervus Equipment Corp. ("Cervus" or the "Company") today announced that it has closed its previously announced offering (the "Offering") of 6.0% convertible unsecured subordinated debentures (the "Debentures"), pursuant to which Cervus issued and sold an aggregate $34,500,000 principal amount of Debentures at a price of $1,000 per Debenture, including $4.5 million aggregate principal amount of debentures issued pursuant to the exercise of an over-allotment option granted by Cervus to the underwriters of the Offering. A syndicate of underwriters led by Raymond James Ltd., and including National Bank Financial Inc., Canaccord Genuity Corp., CIBC World Markets Inc., RBC Dominion Securities Inc., Macquarie Capital Markets Canada Ltd., PI Financial Corp., Fraser Mackenzie Limited, Laurentian Bank Securities Inc., Acumen Capital Finance Partners Limited and M Partners Inc., acted as underwriters for the Offering. The Offering was made by way of a short form prospectus dated July 16, 2012 filed by Cervus with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, except Quebec.

Initially, the net proceeds of the Offering will be used by Cervus to repay a portion of its floor plan payable indebtedness, the proceeds of which were used by Cervus to acquire inventory. Thereafter, Cervus intends to draw down the floor plan payable indebtedness available to it and use the net proceeds of the Offering to fund potential future acquisitions and, if necessary, for working capital and general corporate purposes.  However, management of Cervus will retain broad discretion in allocating the net proceeds of the Offering and Cervus' actual use of the net proceeds will vary depending on the availability and suitability of acquisition and investment opportunities and its operating and capital needs from time to time. There may be circumstances that are not known at this time where a reallocation of the net proceeds of the Offering or a change in the timing of the particular expenditure may be advisable for business reasons that management believes are in Cervus' best interests.

About Cervus

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 52 dealerships located in Western Canada, New Zealand and Australia.   The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick, Nissan and Doosan material handling equipment; and Peterbilt transportation equipment.The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".

Forward-looking Statements

Certain statements included in this news release, including statements or information that contain terminology such as "anticipate", "believe", "intend", "expect", "estimate", "may", "could", "will", and similar expressions, constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, that address activities, events, or developments that Cervus or a third party expects or anticipates will or may occur in the future are forward-looking statements. Examples of such forward-looking statements included in this news release include, but are not limited to, statements relating to the intended use of proceeds of the Offering and the completion of potential acquisitions. These forward-looking statements reflect Cervus' current beliefs and are based on information currently available to Cervus. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict.  Assumptions underlying Cervus' expectations regarding forward-looking statements or information contained in this news release include, among others: that Cervus will use the net proceeds derived from the Offering in the manner specified herein; that potential future acquisitions will be available on reasonable terms; that Cervus is able to receive all required regulatory and third party approvals required to complete any potential future acquisitions; and that such acquisitions can be successfully completed.  Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond Cervus' control.  Some of the risks and other factors, some of which are beyond Cervus' control which could cause results to differ materially from those expressed in the forward-looking statements contained in this news release include, but are not limited to: there may be circumstances that are not known to Cervus at this time where re-allocations of the net proceeds from the Offering may be advisable for business reasons that management believes are in Cervus' best interest; general economic, market and business conditions in Canada and the other jurisdictions where Cervus operates; that Cervus is unable to identify acceptable future acquisition targets for any reason; that potential future acquisitions may not be available on reasonable terms; and that Cervus will be unable to obtain all required regulatory and third party approvals to complete potential acquisitions or will be unable to complete potential future acquisitions for any reason.  Consequently, all of the forward-looking statements included in this news release are qualified by these cautionary statements and other cautionary statements or risk factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Cervus. These forward-looking statements are made as of the date of this news release. Except as required by applicable securities legislation, Cervus assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Cervus Equipment Corporation

For further information:

Graham Drake - President and CEO

Telephone: (403) 567-2095
Fax: (403) 567-0392 Email: gdrake@cervuscorp.com

Randy Muth - Chief Financial Officer

Telephone: (403) 567-2097
Fax: (403) 567-0392 Email: rmuth@cervuscorp.com


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