Liquidation World Inc.

Liquidation World Inc.

March 04, 2011 06:00 ET

Liquidation World Increases Private Placement Financing to $8.1 Million

BRANTFORD, ONTARIO--(Marketwire - March 4, 2011) - Liquidation World Inc. (TSX:LQW) (the "Company") announced today that the Company has successfully closed the second tranche of a private placement financing. The Company is pleased to announce that it has closed an additional 215 Units at $10,000 per Unit, generating gross proceeds of $2.15 million to the Company, bringing the total issued amount, when combined with the first closing, to 810 Units at $10,000 per Unit, and generating aggregate gross proceeds of $8.1 million to the Company.

On March 1, 2011 the Company announced that it had completed a first tranche closing of 595 Units at $10,000 per Unit generating gross proceeds of $5.95 million. The first closing successfully satisfied the conditions of a revised banking agreement with its senior lender and resolved certain financial covenant compliance issues previously reported in the Company's financial statements. Each Unit consists of (i) $10,000 principal amount of newly issued, junior secured subordinated promissory notes of the Company with a three-year term (the "Notes") and (ii) 8,000 common share purchase warrants exercisable into a like number of common shares of the Company, with a five-year term and an exercise price of $0.64 per share. The Notes pay interest semi-annually, at an 11% annual rate. The Notes may be prepaid in year one at 110% of par value; in years two and three they may be prepaid at par.

"We are very pleased to see the high level of interest for this financing to support the Company's strategy to source exciting new deals for our customers and convert legacy stores to the new "LW – Everybody's Outlet Store" brand", commented William Wolf, the Company's Chairman.

"At the same time, as the retail landscape becomes more interesting for entrants to consider Canada a lucrative place to do business, we believe that our long term national presence and legacy customer base could be very beneficial to all parties", said Wolf.

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 & CEO
    866-237-3778 (FAX)
    Liquidation World Inc.
    David Becker
    Interim CFO
    866-237-3778 (FAX)