Apr. 15, 2011 (Filing Services Canada) -- Rocky Mountain Liquor Inc. (RUM - TSX Venture), ("Rocky Mountain" or the "Company") has plans to grow its liquor business from 34 to 39 liquor stores. 38 stores are expected to open by the end of this current quarter and one store in Northern Alberta is expected to open in Q3 2011. Rocky Mountain's wholly owned subsidiary, Andersons Liquor Inc. ("Andersons") has entered into a definitive agreement to acquire two additional liquor stores from a single Vendor in the City of Lethbridge. The new acquisitions have a scheduled closing date in June. These additions will increase Andersons holdings in that city to four stores.
Additionally, a Letter of Intent has been signed with a developer in Northern Alberta that may result in a new store development if completed. The acquisitions are subject to various and normal conditions precedent, including due diligence and board approval. The acquisition cost of all assets, including inventory, for these 3 stores is estimated to be $1.5 million dollars. Andersons has sufficient cash resources on hand to complete these transactions.
Two previously announced potential new store developments are now certain. Andersons 35th store in Pincher Creek, Alberta will open today and the 36th store in Wainwright, Alberta is currently scheduled to open next week. Both greenfield locations are in new markets for the Company.
Rocky Mountain continued implementing its growth strategy with the recent "soft-opening" of a new 10,000 square foot super store in Edmonton called Centre 149, and the purchase of a liquor store in St. Paul (previously announced January 2011). Centre 149 is a new concept for Edmonton. The large format store is primarily a distribution centre for commercial liquor service clients and intra-enterprise transfers. Retail clients have been invited to integrate with our personnel to pick their own orders at greatly discounted prices. It differs from other discount retail-wholesale models by the number of listings available to the public. By utilizing the synergies of Andersons extensive distribution network customers are able to choose from hundreds more products than they are likely to find at a direct competitor. The new facility has a cooler and a cooled keg room where customers can pick up 58 liter kegs of beer on demand. Large format discounters have not offered refrigerated products previously in the City of Edmonton.
The new 10,000 square foot super store has created quite a buzz in the city. CEO Peter Byrne stated, "Many people have expressed their delight at not only the addition of refrigeration but the innovative design that uses external free air to cool products while reducing this facility's carbon footprint." He went on to announce the official Grand Opening reception for Centre 149 on Thursday April 21st. from 5 PM to 8PM. The general public is welcome to drop in and view the store and take advantage of the many specials. Major prizes will be given away including a hot tub and a sauna as well as many smaller prizes every hour the store is open. The Grand Opening is a four day event, Thursday until Easter Sunday.
The addition of these new liquor stores amounts to 7 stores having been acquired or developed since the beginning of 2011. The CEO concluded, "RUM is certainly on course so far for a good year in 2011."
About Rocky Mountain
Rocky Mountain owns 100% of Andersons Liquor Inc. ("Andersons"), headquartered in Edmonton Alberta, which now own and operate 35 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008. It is listed on the TSX Venture Exchange (TSX-V:RUM).
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable securities laws relating to the future growth of the Company, and the ability to execute its business strategy. Readers are cautioned not to place undue reliance on forward-looking statements, and in particular results achieved in 2010 and previous periods. Past results might not be a certain indication of future performance, which is subject to other risks, including but not limited to changes in operational policies, changes in management, changes in strategic focus, market conditions and customer preferences. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that these events may not materialize as well as those additional factors discussed in the section entitled "Risk Factors" in RUM's Management Discussion and Analysis, which can be obtained at www.sedar.com. If they do materialize, there remains a risk of non-execution for any reason.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Peter J. Byrne
Chief Executive Officer
(780) 686-7383
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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