CALGARY, Alberta (Nov. 24, 2016) — Cervus Equipment Corp. (“Cervus” or the "Company") (TSX: CVL) previously announced that it has entered into a definitive agreement for the long term sale and leaseback of approximately $55.7 million of real estate currently owned by the company.

Today Cervus announced that the purchaser, Skyline Commercial REIT, has waived its conditions relating to it obtaining financing and satisfactorily completing its due diligence review of the properties meaning that all material conditions to closing the transaction, other than the delivery of closing payments and customary closing documentation, have been satisfied or waived. The transaction is expected to close in December 2016.

The agreement provides for the sale of the land and buildings of 11 dealerships operated by Cervus and the leaseback by Cervus of those properties with initial lease terms ranging from 15-20 years. After retiring mortgages associated with the properties and rent deposits under the proposed lease, Cervus expects net free cash flow of approximately $27 million. The proposed sales prices and lease rates for the properties result in overall average market capitalization rates of 7.7% for those properties, which is not expected to negatively impact earnings per share. In the short term, proceeds from a successful transaction will be used to reduce debt.

About Cervus Equipment Corp.

Cervus acquires and operates authorized agricultural, construction, materials handling and transportation equipment dealerships. The company has interests in 73 dealerships in Canada, New Zealand and Australia. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Bobcat and JCB construction equipment; Clark, Sellick and Doosan material handling equipment; and Peterbilt transportation equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CVL".