Gander Mountain Company said it registered 9.8 million shares of its common stock originally sold in two private placement transactions to major investors, both of whom serve on the company's board of directors and said they remain long-term investors in the retailer.


The first private placement occurred in December 2006, when GMTN sold 5.7 million shares of common stock to a trust affiliated with David Pratt, chairman of the board of Gander Mountain Company.

 

The second private placement transaction occurred in December 2007, involving the sale of 4.1 million shares of common stock, of which 3 million shares were sold to an entity controlled by Pratt, and 1 million shares were sold to Holiday Stationstores, Inc., an affiliate of Ronald Erickson, vice chairman of the board, and Gerald Erickson, a director of Gander Mountain Company. The net proceeds from the second transaction were used to partially fund the acquisition of Overton's, Inc.

Pratt was first elected to be a director of the company in August 2005 and appointed chairman of the board of directors in December 2006. He is the former Chairman, President and Chief Executive Officer of United Industries, which he founded in 1969. He also is president of Rex Realty in Clayton, Missouri, and is a minority owner of the St. Louis Cardinals major league baseball team.


“This is a routine filing intended merely to fulfill the company's registration rights obligations, and I remain committed to building Gander Mountain's business,” said Pratt. 

 

Ronald A. Erickson is the Chairman and CEO of the Board of Directors of Holiday Companies, which owned about one third of Gander Mountain stock as of May 2007. Holiday Companies and Holiday Stationstores  lease GMTN space for several of its stores and  guarantee about $30 million in GMTN leases with third parties at 13 of other stores and its distribution center. 

 

Erickson is also a member of the Board of Directors of Carriage Services, Inc., a public company engaged in the funeral services business.

 

“This filing completes customary registration rights, nothing more,” said Erickson. “Holiday has believed in the Gander Mountain business since its purchase in 1997 and we remain long- term supporters of the company.”