AutoCanada Inc.

TSX : ACQ


May 14, 2013 09:12 ET

AutoCanada Inc. Announces Increase to Bought Deal Financing

EDMONTON, ALBERTA--(Marketwired - May 14, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:ACQ) announced today that Canada One Auto Group Ltd. ("CAG") will increase its previously announced secondary offering of common shares of the Company to 3,000,000 shares, or $75,000,000 in gross proceeds (the "Secondary Offering"). The Secondary Offering is being underwritten, on a "bought deal" basis, together with 1,600,000 common shares from the treasury of AutoCanada (the "Treasury Offering") (together with the Secondary Offering, the "Offering") by a syndicate of underwriters led by RBC Capital Markets as bookrunner and co-lead manager and Clarus Securities Inc. as co-lead manager and including Canaccord Genuity Corp., Cormark Securities Inc., GMP Securities L.P., Scotiabank and HSBC Securities (Canada) Inc. (collectively, the "Underwriters"). The Company and CAG have granted the Underwriters the option, exercisable in whole or in part and from time to time, to purchase up to an additional 690,000 common shares at any time up to the day that is 30 days following the closing to cover over-allotments. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Treasury and Secondary offerings will be $132,250,000. The size of this option has been increased from the previously announced option, and corresponds with the increase in the number of shares offered under the Secondary Offering.

The number of shares sold under the Treasury Offering has not been changed from the announcement indicated on May 13, 2013, and AutoCanada will not receive any proceeds from the Secondary Offering.

Closing of the Offering is expected to occur on or about June 3, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including approval of the Toronto Stock Exchange.

The common shares will be offered under a short form prospectus to be filed in each of the provinces of Canada except Quebec.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of AutoCanada in the United States. The common shares described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States absent an exemption from registration.

About AutoCanada

AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 30 franchised dealerships in six provinces and has over 1,200 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, and Volkswagen branded vehicles. In 2012, our dealerships sold approximately 30,000 vehicles and processed approximately 309,000 service and collision repair orders in our 333 service bays during that time.

Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.

Forward-Looking Statements

This press release contains "forward-looking statements", within the definition contained in applicable Canadian securities legislation, concerning the anticipated closing date of the Offering. Any such forward-looking statements are based on AutoCanada's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. Any such forward-looking statements are based on assumptions, including the anticipated receipt of regulatory approvals, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. The risks that could cause actual results to differ from current expectations include, but are not necessarily limited to: the impact of general economic conditions, industry conditions, stock market volatility, currency exchange rate and interest rate fluctuations and risks normally encountered in the retail automotive industry such as competition, fluctuations in consumer demand and reliance on manufacturers. The foregoing list of important factors is not exhaustive. AutoCanada cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. AutoCanada does not intend, and does not assume any obligation, to update or revise these forward-looking statements except as required pursuant to applicable securities laws.

For additional information with respect to certain of these risks or factors, plus additional risks or factors, reference should be made to the Company's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities, which are available online under the Company's profile at www.sedar.com or on the Company's website at www.autocan.ca.

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