Donald K. Johnson, Chairman of RTO Enterprises, Canada's
largest Rent to Own company, sold 1.2 million shares of RTO
stock. The sale was made to Vyco Ltd, which is also owned by Mr.
Johnson and held in trust. The sale represents a 28% stake in
the company.
CALGARY, ALBERTA--RTO Enterprises Inc. (TSX:RTO) announces
that it has completed the previously announced non-brokered
private placement of 2,500,000 Series A Preference Shares
from treasury to eight purchasers at a price of $1.00 per share,
for gross proceeds of $2,500,000. The private placement did not
result in a change of business or change of control of the
Company.
The proceeds of the private placement, together with a
drawdown
of $1,500,000 on the Company's bank revolver, were used by the
Company to repay the $4,000,000 subordinated debentures issued
to Rockwater Capital Corporation (formerly McCarvill
Corporation)
and Mr. Donald K. Johnson, the Chairman of the Board of
Directors
of the Company.
Details regarding the private placement and the subordinated
debentures can be found in the Company's press release issued on
November 5, 2002.
RTO Enterprises Inc. is in the business of renting, with or
without an option to purchase, brand name home entertainment
products, appliances and household furniture across Canada.
Currently, the Company owns and operates 136 stores in 80 cities
and towns in all ten Canadian provinces.
