LIQ STORES COMPLETES SALE OF INTEREST IN NEW JERSEY STORES Liquor Stores N.A. Ltd. has closed, effective Nov. 30, 2017, the previously announced sale of its 51-per-cent interest in Birchfield Ventures LLC which owns two stores in New Jersey.
Details of the transaction
The company completed the sale of its indirect 51-per-cent interest in Birchfield to certain other members of Birchfield for gross proceeds of approximately $3.8-million ($3-million (U.S.)). The purchase price will be satisfied by the payment of $861,000 ($678,000 (U.S.)) received at the closing, with the balance payable by Feb. 15, 2018, pursuant to a secured promissory note made by the purchasers.
The transaction includes a decrease in the size of a working capital loan previously extended by the company to Birchfield to a maximum amount of $7.0-million ($5.5-million (U.S.)), of which $4.2-million ($3.3-million (U.S.)) is drawn as of the date hereof. The maturity date of the loan has been extended to Feb. 15, 2018, at which time all principal and interest owing under the loan will become due and payable.
In addition, the transaction has resulted in the cancellation of the company's obligation to purchase the remaining 49 per cent of Birchfield as early as Jan. 1, 2019, currently valued at $12.4-million.