Liquidation World Inc.

Liquidation World Inc.

January 28, 2011 09:57 ET

Liquidation World Announces a Private Placement of up to $7 Million

BRANTFORD, ONTARIO--(Marketwire - Jan. 28, 2011) - Liquidation World Inc. (TSX:LQW) (the "Company") intends to raise up to $7 million by way of a non-brokered private placement financing of convertible junior subordinated secured debentures (the "Debentures").

The Debentures are convertible at the option of the holder into Common Shares of the Company at a price that is 20 percent above 10 day VWAP prior to the closing date per share. The Debentures have a term of three years and will bear interest at 10 percent per annum, payable semi-annually. Up to 50 percent of the interest amounts may be paid by the Company in Common Shares. The Debentures also provide for the issuance of additional Common Shares in the event that there is a change of control of the Company, with the number of such additional shares determined depending on the time of the change of control.

On and after January 31, 2012 and prior to maturity, the Debentures may be redeemed in whole or in part from time to time at the Company's option, at a price ranging from between 103 percent of their principal amount plus accrued and unpaid interest to their principal amount plus accrued and unpaid interest, depending on the time of redemption. The Debentures will not be redeemable prior to January 31, 2012.

The proceeds from the financing will be primarily used for corporate development and general working capital purposes.

The Private Placement is expected to close on or about February 21, 2010, subject to obtaining all required regulatory and other customary approvals including, the approval of the TSX.

William Wolf, Chairman of Liquidation World and a participant in this financing commented, "this financing provides the Company with funds to continue to implement management's strategy to re-align its infrastructure and transform the company from a liquidator of closeout goods into Canada's premier retailer for value based shoppers."

About Liquidation World

Liquidation World operates 92 stores in Canada and one in the United States. Liquidation World is based in Brantford, Ontario. The Company opened its first store in Calgary, Alberta in 1986 and today, with more than 1,500 employees, is Canada's largest operator of closeout retail stores.

Contact Information

  • Liquidation World Inc.
    Seth Marks
    President and CEO
    866-237-3778 (FAX)
    Liquidation World Inc.
    David Becker
    Interim CFO
    866-237-3778 (FAX)