Business
More RUM and a 6-pack of Acquisitions
EDMONTON, Feb. 20 /CNW/ - Humber Capital Corporation (TSX-V: RUM) (Humber), listed on the TSX Ven...
About this update from Rocky Mountain Liquor Inc.
[{"type":"text","content":"\n\n\n\nEDMONTON, Feb. 20 /CNW/ - Humber Capital Corporation (TSX-V: RUM)\n(Humber), listed on the TSX Venture Exchange (Exchange), announced today that\nits wholly owned subsidiary, Andersons Liquor Inc. (Andersons) initiated\ndevelopment of a new liquor store under its "Great Canadian Liquor" brand in\nRocky Mountain House, Alberta. This is in addition to the existing branded\nstore "Liquor4Less" which has operated there since 2005.\n\n\nHumber and Andersons have also entered into definitive agreements with\nthree separate vendors to acquire six additional stores in Northern and\nSouthern Alberta, subject to due diligence and final approval of their board\nof directors. The aggregate purchase price of these assets is estimated to be\n$3.1-million dollars.\n\n\n"These new acquisitions provide further geographical diversification,\nwhich enhances our distribution strategy," said Peter Byrne, the new CEO of\nHumber.\n\n\nOne acquisition in Southern Alberta has already been completed; while the\nacquisition of another in the Town of Athabasca is expected to close February\n23, 2009. This will be Andersons 2nd store in Athabasca. The acquisition of\nfour other stores in the southern region is scheduled to close by the end of\nMarch.\n\n\nShould all transactions close as intended, Andersons will operate 25\nstores in Alberta, five in Northern Alberta, five in Southern Alberta and 15\nin Central Alberta. This represents an increase of seven stores since December\n1, 2008, when Humber acquired 100% of Anderson's shares.\n\n\nHumber and Andersons have sufficient financial resources to complete\nthese transactions with existing bank financing, proceeds from the previous\nprivate placement for Humber, and proceeds of the convertible debenture as\ndisclosed to investors on January 30, 2009. Further details will be\nforthcoming with the anticipated closure of these transactions.\n\n\n"These acquisitions are expected to be immediately accretive." Mr. Byrne\nnoted. "It clearly demonstrates growth opportunities remain certain in the\nprivatized liquor industry."\n\n\nHumber has entered into a non-binding agreement with one vendor to issue\nup to $1-million under a five-year unsecured subordinated note and will bear\ninterest at 8.25% per annum payable annually. The debenture is convertible\nin...