Gander Mountain Company Announces Plans To Voluntarily Delist Common Stock From The Nasdaq Global Market

ST. PAUL, Minn., Dec. 29 /PRNewswire-FirstCall/ -- Gander Mountain Company ( www.GanderMtn.com) (Nasdaq: GMTN), the nation's largest retail network of stores for hunting, fishing, camping, and marine products and services and outdoor lifestyle apparel and footwear, today announced its intent to withdraw its shares of common stock from listing on the Nasdaq Global Market.

A special committee of the company's board of directors, comprised of independent directors, has recommended, and the board of directors has approved, plans to cease the registration of its common stock with the Securities and Exchange Commission under the Securities Exchange Act of 1934. The company expects that, as a result of this deregistration, its shares of common stock will cease to be listed on the Nasdaq Global Market.

Going-Private Transaction

As previously announced, in order to ensure that it will be eligible to deregister its shares of common stock, in accordance with SEC rules and regulations, Gander Mountain will reduce its number of beneficial shareholders to below 300. To accomplish this, the special committee of the board recommended, and the board of directors approved, an amendment to the company's articles of incorporation to effect a 1-for-30,000 reverse stock split of its common stock. The reverse stock split will occur on the record date which is currently anticipated to be January 14, 2010. After the reverse stock split, any shareholder holding less than one share will receive a cash payment of $5.15 for each share held prior to the reverse split. Immediately following the reverse stock split, the company will file a second amendment to its articles of incorporation to effect a 30,000-for-1 forward stock split. As a result, shareholders owning 30,000 or more shares of common stock at the time of the reverse split will retain their current numbers of shares of common stock without change and not receive cash in the transaction.  The funding for the cash payment for the fractional shares described above will be provided by the company's two largest shareholders, Gratco LLC and Holiday Stationstores, Inc.