/NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
U.S./
CALGARY, Jan. 11 /CNW/ - Rocky Mountain Dealerships Inc. ("Rocky Mountain" or the "Corporation") is pleased to announce the closing of the sale of an additional 975,000 common shares in the capital of the Corporation ("Common Shares") at a price of $10.00 per share for gross proceeds of $9,750,000 pursuant to the exercise of the over-allotment option (the "Over-Allotment Option") granted by Rocky Mountain to a syndicate of underwriters led by RBC Capital Markets and which included BMO Capital Markets, Scotia Capital Inc., Blackmont Capital Inc. and HSBC Securities (Canada) Inc. (collectively, the "Underwriters"). The Over-Allotment Option was granted to the Underwriters in connection with the Corporation's initial public offering of 6,500,000 Common Shares at a price of $10.00 per share (the "Offering"), which closed on December 20, 2007. The total gross proceeds raised pursuant to the Offering and the Over-Allotment Option was $74,750,000.
The net proceeds from the Over-Allotment Option, being $9,165,000, were paid to the former shareholders of Hammer Equipment Sales Limited ("Hammer") and Hi-Way Service (Medicine Hat) Inc. ("Hi-Way") as part of the purchase price for the acquisition by Rocky Mountain of all of the issued and outstanding shares of Hammer and Hi-Way, as described in the final long form prospectus of Rocky Mountain dated December 11, 2007.
About Rocky Mountain:
Rocky Mountain represents one of Alberta's largest agriculture and construction equipment dealerships with 13 dealership branches, revenues of $290 million, and 400 employees located throughout Alberta. Rocky Mountain sells, rents and leases new and used construction and agriculture equipment, including the Case Construction and Case IH Agriculture brands, as well as offering product support and finance and insurance products to its customers. The Common Shares of Rocky Mountain trade on the Toronto Stock Exchange under the symbol "RME".
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