CALGARY, June 14, 2018 /CNW/ - Cervus Equipment Corporation ("Cervus") (TSX: CERV) today announced that its founder, largest shareholder and Board Chair, Peter Lacey, and his wife, Kathy Lacey, have sold 500,000 common shares of Cervus by way of a cross on the Toronto Stock Exchange at a price of $13.80 per share for aggregate gross proceeds of $6,900,000. As announced in a news release issued on June 7, 2018, these sales are required in order for the Laceys to comply with recent amendments to the rules governing qualified investments for registered retirement savings plans. Almost 20 years ago, the Laceys each placed a significant portion of their Cervus shareholdings into their respective RRSPs. A few years ago the Canadian federal government changed the RRSP rules to prohibit investments by a person within an RRSP where the person, together with that person's associates and affiliates, owns 10% or more out the company's outstanding shares. Persons that exceeded that 10% limit prior to the introduction of the new RRSP qualification rules have until December 31, 2021 to comply. Consequently, the Laceys have engaged Acumen Capital Partners of Calgary, Alberta to assist them in the orderly sale, from time to time, in brokered arm's length transactions, of sufficient shares to comply with the new RRSP limit.
Immediately prior to the sale, the Laceys beneficially owned or exercised control or direction over 3,228,242 common shares of Cervus, plus deferred shares exchangeable for an aggregate of 40,514 common shares, representing approximately 20.6% of the outstanding common shares of Cervus on non-diluted basis and approximately 20.8% on a partially-diluted basis assuming the exchange of their deferred shares for common shares.
Immediately after the sale, the Laceys beneficially owned or exercised control or direction over 2,728,242 common shares of Cervus, plus deferred shares exchangeable for an aggregate of 40,514 common shares, representing approximately 17.4% of the outstanding common shares of Cervus on non-diluted basis and approximately 17.6% on a partially-diluted basis assuming the exchange of their deferred shares for common shares (in each case, a decrease in their shareholdings of 3.2%).
This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issuers which requires the issuance of this news release and the filing of an early warning report under Cervus' profile on SEDAR (www.sedar.com) containing additional information respecting the forgoing matters. Peter Lacey and Kathy Lacey are residents of Red Deer, Alberta and have filed that report on SEDAR. A copy of that early warning report may be obtained under Cervus' profile at www.sedar.com or by contacting Devin Mylrea, Corporate Counsel at Cervus, at 403-567-2097.
About Cervus Equipment Corporation
Cervus acquires and operates authorized agricultural, transportation and materials handling equipment dealerships. The Company has interests in 62 dealerships in Canada, New Zealand, and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick and Doosan material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CERV".
SOURCE Cervus Equipment Corp.