McCoy Corporation

McCoy Corporation

June 07, 2007 19:49 ET

McCoy Corporation Announces Pricing of Previously Announced Public Share Offering

EDMONTON, ALBERTA--(Marketwire - June 7, 2007) -


McCoy Corporation (the "Corporation") (TSX:MCB) is pleased to announce it has agreed to issue and sell 6.95 million common shares at $5.25 per common share for gross proceeds of approximately $36.5 million. In addition, Foundation Equity Corporation, a major shareholder, which currently controls approximately 69% of the Corporation, has agreed to sell 1.9 million common shares at $5.25 per common share. The Corporation will not receive any proceeds from the sale of common shares by Foundation Equity Corporation.

The $46.462 million offering is being led by Paradigm Capital Inc. and includes Raymond James Ltd. (the "Agents"). The closing is expected to occur on or about June 14, 2007 and is subject to certain conditions, including final due diligence and regulatory approval.

In addition, the Corporation has granted the Agents an option to sell up to an additional 10% of the number of Common Shares sold by the Corporation, exercisable at any time up to 30 days after the closing of the Offering.

The net proceeds of the offering received by McCoy Corporation will be used for working capital and to further the Corporation's corporate development plans.

This news release does not constitute an offer to sell, or the solicitation of an offer to buy, the common shares of McCoy in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of the common shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The common shares being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States, or to, or for the account or benefit of, a U.S. person, absent U.S. registration or an applicable exemption therefrom.

About McCoy Corporation

McCoy Corporation is a publicly traded company listed on the Toronto Stock Exchange under the symbol "MCB". McCoy has three operating segments and employs approximately 800 individuals in Alberta and British Columbia.

Truck & Trailer Products & Services

The Real McCoy Service Centres (a)
Peerless Limited
Prairie Truck Ltd. (50%)

Specializes in equipment installation, suspension work, welding, safety inspections, brake service, alignments, frame straightening, axles and hydraulics for heavy-duty and some light-duty trucks.

Trailer Manufacturing

Scona Trailer Manufacturing (a)
Peerless Limited

Scona produces lowboys, flat decks, step decks, oilfield floats and specialty trailers.

Peerless is a market leader in the development of quality oilfield and logging trailers for Western Canada.

Energy Products & Services

Farr Canada (a)
Inotec Coatings and Hydraulics Inc.
Rebel Metal Fabricators Ltd.

Manufacture and service products for conventional and non-conventional oil and gas industry: hydraulic power tongs, tong trucks, trailer mounted hydrovac and vacuum tanks, computerized torque turn monitoring system, wear and corrosion resistant coatings and specialized hydraulic services.

(a) divisions of McCoy Corporation

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of U.S. and other applicable laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. The Corporation does not assume any obligation to update any forward looking information contained in this news release.

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