May 12, 2009 17:03 ET

RONA Announces $150 Million Equity Issue

BOUCHERVILLE, QUEBEC--(Marketwire - May 12, 2009) -


RONA inc. ("RONA" or the "Company") (TSX:RON) today announced that it has entered into an agreement with a syndicate of underwriters led by Scotia Capital Inc., under which the underwriters have agreed to purchase, on a bought-deal basis, 11,630,000 Common Shares (the "Shares") at a price of $12.90 per Share for aggregate gross proceeds to RONA of $150,027,000. In addition, the Company has agreed to grant to the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 1,744,500 Shares at a price of $12.90 per Share, on the same terms and conditions as the offering, exercisable any time, in whole or in part, until the date that is 30 days from the closing date of the offering. If the Over-Allotment Option is exercised in full, the total gross proceeds to RONA will be $172,531,050.

The Shares will be offered for sale to the public in each of the provinces of Canada pursuant to a short form prospectus to be filed with Canadian securities regulatory authorities in all Canadian provinces.

The offering is scheduled to close on or about June 2, 2009, subject to certain conditions, including Toronto Stock Exchange and other customary regulatory approvals, as well as other conditions set forth in the underwriting agreement.

This offering will further strengthen RONA's balance sheet and increase its financial flexibility in order to continue to execute the Company's 2008-2011 strategic plan. The net proceeds of the offering will be used by the Company to reduce indebtedness, contribute to funding of strategic capital projects and for general corporate purposes.

The Shares being offered have not been and will not be registered under the United States Securities Act of 1933 and state securities laws. Accordingly, the Shares may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.


This press release includes "forward-looking statements" that involve risks and uncertainties. All statements other than statements of historical facts included in this press release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Company, may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements.

For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please also refer to the Company's public filings available at and In particular, further details and descriptions of these and other factors are disclosed in the Annual MD&A under the "Risks and uncertainties" section and in the "Risk factors" section of the Company's current Annual Information Form.

The forward-looking statements in this news release reflect the Company's expectations as at May 12, 2009, and are subject to change after this date. The Company expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.

About RONA

RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. RONA operates a network of close to 700 franchise, affiliate and corporate stores of various sizes and formats. With close to 30,000 employees working under its family of banners in every region of Canada and more than 15 million square feet of retail space, the RONA store network generates over $6.3 billion in annual retail sales. Please visit

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