Talon Merchant Capital acquires a significant stake in Liquidation World

Liquidation World Inc. (“LQW”) shares rose about four per cent on Wednesday, January 28, 2009, after LQW struck a definitive purchase agreement pursuant to which Talon Merchant Capital (“Talon”) purchased a significant equity stake in LQW.  Talon acquired $7.6 million worth of shares of LQW partly for cash and partly as payment of the consideration for the purchase by LQW of Talon’s complementary U.S. wholesale business.

Aird & Berlis LLP acted as Canadian counsel to Talon and its affiliates on the deal. The team was led by Martin Kovnats and included Jeff Merk and Morli Shemesh (Corporate/Commercial/M&A); Norman Kahn and Derek McCallum (Leasing); Bill VanderBurgh (Regulatory); and Barbara Worndl (Taxation). 
 
“In the very concerning economic times in which we all live, LQW likely has a great market opportunity to be able to source good quality product for resale at prices which allow value for the customer as well as a profit margin for LQW. The USA merchandising expertise which the new management has should greatly assist LQW in commercializing the opportunity,” said Martin Kovnats, as quoted in volume 7, issue 10 of ACQ Magazine.