Cervus' Largest Shareholder to Reduce Shareholdings to under 10% to Fit Within Revised RRSP Rules
CALGARY, June 7, 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, intend to sell a portion of their shares from time to time over the next three years such that they will own under 10% of Cervus' shares by December 31, 2021. 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.
The Laceys currently hold 3,228,242 common shares in aggregate, being approximately 20.58% of the outstanding shares of Cervus. Almost 20 years ago, they 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.
Peter Lacey stated: "I have been involved with Cervus and its predecessors since 1982 and I remain committed to, and believe in, Cervus. Following these sales, Kathy and I will continue to be among the largest shareholders of Cervus with just under 10% of the shares. Further, I intend to remain Chair of the Board and look forward to working with management and my fellow board members in helping Cervus achieve its growth objectives."
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 Corporation
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