Liquidation World Inc.

Liquidation World Inc.

September 09, 2010 09:55 ET

Liquidation World Increases Credit Facility to $25 Million

BRANTFORD, ONTARIO--(Marketwire - Sept. 9, 2010) - Liquidation World Inc. (TSX:LQW) today announces that it has increased its current credit facility with its senior lender, the Royal Bank of Canada by $5,000,000. This asset-backed lending facility provides the company with up to a $25,000,000 facility, up from $20,000,000. 

Several modifications to financial covenants were also made, reflecting the company's recent successful equity financing which raised gross proceeds of approximately $10,000,000. 

"The increased capacity generated will allow us to further take advantage of compelling purchasing opportunities as we head into the very active Fall and Winter retail seasons", said Seth Marks, Liquidation World's President and CEO. 

The changes to the credit facility were part of an initiative supported by the Royal Bank of Canada to assist Liquidation World with its strategy to re-brand its stores, including opening new stores and expanding and converting legacy Liquidation World stores, to the Company's new banner: "LW – Everybody's Outlet Store". To date, Liquidation World has converted 21 stores and opened 7 stores across Canada under its new, "LW – Everybody's Outlet Store" banner. 

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 88stores 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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