Cervus Equipment Corporation Completes Acquisition of the Remaining Shares of Agriturf Limited

Symbol: CVL (TSX)

TORONTO, Aug. 1, 2012 /CNW/ - Cervus Equipment Corporation ("Cervus") (TSX: CVL) today announced that it has completed the previously announced acquisition of the remaining 39.7% interest in Agriturf Limited ("Agriturf") that it did not already own. The purchase of $1,581,926 (NZ $1,954,443 at $0.8094 Canadian per New Zealand dollar) was paid via the issuance of 83,695 common shares of Cervus Equipment Corporation at a deemed price of $18.901 per share.

"This acquisition is an important element of Cervus' plan to efficiently consolidate agricultural equipment dealerships in New Zealand, where we believe the potential for additional growth exists," said Graham Drake, President and CEO of Cervus Equipment Corporation."We expect this acquisition will optimize operations at these six locations, and we will focus on improving performance going forward."

Agriturf is a New Zealand Corporation that carries on business on the north island of New Zealand, offering authorized John Deere agricultural and turf equipment, parts and service in six locations in the Manawatu, Rotorua, Hawke's Bay and Taranaki regions. Agriturf is now wholly-owned by Cervus and will operate under the Cervus name going forward.

About Cervus

Cervus acquires and manages authorized agricultural, commercial, industrial and transportation equipment dealerships with interests in 51 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 Information

This press release contains certain forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking information relating to optimizing operations at the six Agriturf locations and the improvement of performance going forward.  Cervus believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to Cervus, including the historic performance of their businesses and current business and economic trends. You are cautioned that the preceding list of assumptions is not exhaustive. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Cervus' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties may include but are not limited to the risks identified in the 2011 Annual Information Form of Cervus Equipment Corporation under the heading "Risk Factors" which is available electronically at www.sedar.com. Any forward-looking information is made as of the date hereof and, except as required by law, Cervus assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.

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

 

SOURCE: Cervus Equipment Corporation

Graham Drake -CEO
of Cervus Equipment Corporation
Telephone: [phone]
Fax: [phone]
Email: [email protected]

Randy Muth - Chief Financial Officer
of Cervus Equipment Corporation
Telephone: [phone]
Fax: [phone]
Email: [email protected]