Liquidation World Inc.

Liquidation World Inc.

March 19, 2010 14:11 ET

Liquidation World Announces the Closing of $2,000,000 Private Placement Financing

BRANTFORD, ONTARIO--(Marketwire - March 19, 2010) - Liquidation World Inc. (TSX:LQW) (the "Company") and the special committee of its board of directors today announce that the Company has closed a private placement financing (the "Financing") with Talon Mezzanine Partners LLC, an entity of which William Wolf is a manager, and Oakwest Corporation Limited, an entity of which Eric Beutel is an officer (together, the "Subscribers"). The $2,000,000 aggregate Financing involved the purchase by each of the Subscribers of one unit (each a "Unit") issued by the Company, with each Unit consisting of (i) $1,000,000 principal amount of newly issued secured non-convertible subordinated notes of the Company with a three year term; and (ii) common share purchase warrants exercisable into 791,614 common shares of the Company, with a five year term and an exercise price of $0.66 per share.

Jeffrey Mandel, the chairman of the Special Committee, commented that "The completion of the Financing comes at an important juncture for the Company and should provide the Company with fresh capital to assist the Company in purchasing new inventory to fill our stores." Mr. Mandel went on to say that "By having two of our existing shareholders provide the money for the financing, we were able to complete the financing in a short time period in a cost effective manner."

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 96 stores in Canada and one 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.

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