Liquidation World Inc.
TSX : LQW

Liquidation World Inc.

July 16, 2010 08:34 ET

Liquidation World Announces Private Placement for $10,000,250

BRANTFORD, ONTARIO--(Marketwire - July 16, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Liquidation World Inc. (the "Company" or "Liquidation World") (TSX:LQW) is pleased to announce that it intends to undertake a "best efforts" brokered private placement of up to 11,765,000 common shares at an Offering Price of $0.85 per share for gross proceeds to the Company of up to $10,000,250 (the "Offering"). The net proceeds from the Offering will be used to fund the Company's general corporate and working capital purposes.

Cormark Securities Inc. as lead agent together with BayFront Capital Partners Ltd. and Canaccord Genuity Corp. (the "Agents") will act as agents for this financing. Closing of the proposed private placement is anticipated to occur on or about August 5, 2010 and will be conditional upon, among other things, the receipt of all necessary regulatory approvals. All securities issued pursuant to this private placement are subject to a four month hold period from closing.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties, and actual results may differ materially. Due to fluctuations in gross margins and expenses, an increase in revenue does not directly correlate to an increase in net earnings.

About Liquidation World

Liquidation World liquidates consumer merchandise through 89 stores in Canada and 1 in the United States. The Company solves asset recovery problems in a professional manner for the financial services industry, insurance companies, manufacturers, wholesalers and other organizations. 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 liquidator.

Contact Information

  • Liquidation World Inc.
    Seth Marks
    President and CEO
    519-720-2552
    866-237-3778 (FAX)
    sethm@lwstores.com
    or
    Liquidation World Inc.
    Chris Rath
    CFO
    519-720-2553
    866-237-3778 (FAX)
    chrisr@lwstores.com