Rockwater Capital Corporation

Rockwater Capital Corporation

January 11, 2005 16:50 ET

Rockwater Completes $35 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ROCKWATER CAPITAL CORPORATION

TSX SYMBOL: RCC

JANUARY 11, 2005 - 16:50 ET

Rockwater Completes $35 Million Financing

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2005) - Rockwater Capital
Corporation (TSX:RCC) today announced that it has completed its
previously announced private placement of $35 million principal amount
of senior unsecured convertible debentures in the capital of Rockwater
due December 31, 2010. Rockwater issued and sold $30 million of the
debentures to Caisse de depot et placement du Quebec and $5 million of
the debentures to members of senior management of Rockwater.

The debentures will be convertible, at the option of the holder, into
Rockwater common shares at a conversion price of $1.00 per share,
subject to reset based on a premium to the offering price of the
Rockwater common shares in a public offering by Rockwater that may occur
before June 30, 2005.

The net proceeds of the private placement will be used to repay the
bridge loan provided to Rockwater by a Canadian chartered bank in
connection with the acquisition of KBSH and for general working capital
purposes.

Rockwater Capital Corporation (www.Rockwater.ca) is a high growth
independent diversified financial services company. Rockwater focuses on
three distinct businesses: wealth management, asset management, and
capital markets. Rockwater's operating subsidiaries are First Associates
Investments Inc., a full service broker dealer, and KBSH Capital
Management Inc. and Rockwater Asset Management Inc., both investment
management firms.

This press release may contain forward-looking statements relating to
expected future events and financial and operating results of Rockwater
that involve risks and uncertainties. Actual results may differ
materially from management expectations as projected in such
forward-looking statements for a variety of reasons, including market
and general economic conditions and the risks and uncertainties detailed
from time to time in Rockwater's interim and annual financial statements
and other continuous disclosure documents filed by Rockwater with the
Canadian securities regulatory authorities. Due to the potential impact
of these factors, Rockwater disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, unless required by
applicable law.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE U.S.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Rockwater Capital Corporation
    William D. Packham
    President and CEO
    (416) 864-2100