Mar. 1, 2010 (Filing Services Canada) -- Rocky Mountain Liquor Inc. (RUM - TSX Venture), ("Rocky Mountain Liquor" or the "Company"), listed on the TSX Venture Exchange (the "Exchange"), has entered into 3 separate transactions that may result in 4 additional liquor stores.
Three of the four stores will be located in Northern Alberta. Rocky Mountain's wholly owned subsidiary, Andersons Liquor Inc. ("Andersons") has entered into a definitive agreement to acquire a two-store chain from one vendor in St. Paul, Alberta and has entered into a lease agreement with a landlord to develop a new store location in Lac La Biche.
In Southern Alberta a letter of intent has been signed by Andersons with a separate landlord to develop a new liquor store. The opening of this location is subject to a municipal public hearing and is dependent on Andersons obtaining a development permit. Should this development proceed Andersons will operate six stores in Southern Alberta.
The new Lac La Biche liquor store is expected to be renovated and in operation within the second quarter of 2010. There is currently one other liquor store and one hotel off sale located in Lac La Biche. Andersons currently has six stores in the Northern region and these three will bring that total to nine.
The St. Paul acquisition of 2 stores has a scheduled closing date in the first quarter, before March 31, 2010. This will give Andersons 2 of the 4 stores in the St. Paul market. The acquisition of the St. Paul's stores is subject to various conditions precedent, including board approval.
The combined acquisition and development costs of all four stores, including inventory is estimated to be $3.0MM. Andersons has sufficient financial resources to complete these transactions with existing bank financing.
Andersons currently operates 27 stores and have previously announced the development of two other new locations. Should all of these transactions occur, this would bring the total number of stores operated by Andersons to 33.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future growth and priorities for the Company, and the ability to execute the business strategy. Readers are cautioned not to place undue reliance on forward-looking statements, and should not rely on past performance when evaluating this acquisition, and in particular results achieved in 2008 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 (including but not limited to the inability to locate suitable acquisitions or new store development locations).
For further information:
Peter J. Byrne
Chief Executive Officer
(780) 686-7383
Tracey Bean
Chief Financial Officer
(780) 683-2326
Rocky Mountain Liquor Inc.
Suite 200
17834 106 Ave
Edmonton, AB, T5S 1V4
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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