RONA INC.
TSX : RON

RONA INC.

June 02, 2009 09:03 ET

RONA Closes $150 Million Equity Issue

BOUCHERVILLE, QUEBEC--(Marketwire - June 2, 2009) -

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

RONA inc. ("RONA" or the "Company") (TSX:RON) today announced that it has closed its previously announced bought deal public offering of Common Shares (the "Shares") at a price of $12.90 per Share purchased by a syndicate of underwriters led by Scotia Capital Inc. The offering results in a total of 11,630,000 Shares being issued today by RONA for gross proceeds of $150,027,000. The underwriters have an over-allotment option to purchase up to an additional 1,744,500 Shares at a price of $12.90 per Share, exercisable for a period of 30 days from closing on the same terms and conditions as the offering. If the over-allotment option is exercised in full, the total gross proceeds to RONA will be $172,531,050.

This equity issue 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. RONA intends to use substantially all of the net proceeds of the offering to reduce indebtedness with any remaining net proceeds to be used for funding of capital projects and general corporate purposes.

The Shares offered under the offering 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.

FORWARD-LOOKING STATEMENTS

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 www.sedar.com and www.rona.ca. 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 Press release reflect the Company's expectations as at June 2, 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 www.rona.ca.

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