Oct. 14, 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") reported its subsidiary Andersons Liquor Inc. ("Andersons") has secured $3 million in mezzanine financing from a National Merchant Banking firm ("Mezzanine Lender").
"We are pleased to welcome a new financing partner. This is a natural growth step in our capital structure, which allows us additional financing, while minimizing dilution to achieve our strategic growth plans," stated Tracey Bean, CFO.
The mezzanine financing can be used for working capital purposes, including general corporate purposes, investment buys on inventory, acquisition of liquor stores, and new store "green-field" developments.
The mezzanine financing is a 4-year second lien secured subordinated note and will bear cash interest at 9.90% per annum payable monthly. There are no principal payments, with the principal amount due at maturity. The Mezzanine Lender will be issued 1,000,000 warrants exercisable into Rocky Mountain Liquor shares at the Mezzanine Lender's option with a strike price based on the 20 day average end of day market price immediately preceding the closing of this financial transaction. The mezzanine financing remains subject to Exchange approval.
"This financing is a great fit in our capital structure. Both our senior and this second lien financing have been structured to mesh together," said Mr. Bean.
About Rocky Mountain Liquor:
Rocky Mountain Liquor owns 100% of Andersons Liquor Inc. ("Andersons") headquartered in Edmonton Alberta, which owns and operates 32 private liquor stores in that province.
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. 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 Rocky Mountain'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 or complete investment buys).
For further information:
Tracey Bean
Chief Financial Officer
(780) 863-2326
Source: Rocky Mountain Liquor Inc. (TSX-V RUM)
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