/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO
UNITED STATES WIRE
SERVICES/
CALGARY,
AB, Jan. 21, 2025 /CNW/ - Big Rock Brewery
Inc. (TSX: BR) ("Big Rock" or the
"Corporation") is pleased to announce the closing of
its previously announced settlement (the "Debt Settlement")
of all indebtedness and liabilities owing by the Corporation to VN
Capital Fund I, LP ("VN Capital"), being the Corporation's
lender under its second lien term facility (the "Second Lien
Facility"). Big Rock is also pleased to announce the closing of
its concurrent private placement (the "Private Placement")
of common shares in the capital of the Corporation ("Common
Shares") at a price of $1.00 per
Common Share for gross proceeds of $8,400,000.
The Private Placement, together with the Debt Settlement,
provide Big Rock with immediate financial stability as the
completion of these transactions allows Big Rock to address its
significant working capital deficiency, settle all amounts owing
under the Second Lien Facility and provide operating capital to Big
Rock, allowing Big Rock to continue as a going concern.
"We are grateful and appreciative of the overwhelming support
that we have received, from our current shareholders such as VN
Capital and the McNally family, our Senior Leadership Team and our
new shareholders. We believe that the strong demand for the
Private Placement, which resulted in an upsizing of the Private
Placement, is a reflection of the belief in our new management
team, our board, our people and our business.
Closing of the transactions is critical for the future growth of
our business as the transactions allow us to:
- prioritize and commit capital and resources;
- increase both our capabilities and capacity in the
Ready-To-Drink segment; and
- continue to improve and embrace our roots in the Craft Beer
market.
In summary, we believe closing of the transactions marks an
important step forward for Big Rock, as we continue to work to grow
revenues consistent with our strategic plan", stated David Kinder, President and Chief Executive
Officer of Big Rock.
About Big Rock Brewery Inc.
In 1985, Ed McNally founded Big
Rock to contest the time's beer trends. Three bold,
European-inspired offerings – Bitter, Porter and Traditional Ale –
forged an industry at a time heavy on easy drinking lagers and
light on flavour. Today, our extensive portfolio of signature
beers, ongoing seasonal offerings, six ciders (Rock Creek Cider®
series), custom-crafted private label products and other notable,
licensed alcoholic beverages keeps us at the forefront of the craft
beer revolution and still proudly contesting the beer and alcoholic
beverage trends of today. Big Rock has brewing operations in
Calgary, Alberta and Toronto, Ontario. Big Rock trades on the TSX
under the symbol "BR". For more information on Big Rock visit
www.bigrockbeer.com.
CAUTIONARY STATEMENTS:
Forward-Looking Statements
This press release contains forward-looking statements
regarding, among other things: the impact of the Private Placement
and Debt Settlement on Big Rock and the anticipated benefits
thereof, including that they provide the Corporation with immediate
financial stability as they allow Big Rock to address its
significant working capital deficiency, settle all amounts owing
under the Second Lien Facility, provide operating capital to Big
Rock, allowing Big Rock to continue as a going concern, to
prioritize and commit capital and resources, to increase the
Corporation's capabilities and capacity in the Ready-To-Drink
segment, and to continue improving and embracing our roots in the
Craft Beer market; and the Corporation's belief that the strong
demand for the Private Placement is a reflection of the belief in
the Corporation's new management team, board of directors, people
and business. These forward‐looking statements are provided as of
the date of this press release, or the effective date of the
documents referred to in this press release, as applicable, and
reflect predictions, expectations or beliefs regarding future
events based on the Corporation's beliefs at the time the
statements were made, as well as various assumptions made by and
information currently available to them. In making the
forward-looking statements included in this press release, the
Corporation has applied several material assumptions, including,
but not limited to, assumptions regarding the benefits of the
Private Placement and the Debt Settlement on the Corporation's
financial condition; and that general economic and business
conditions will not change in a materially adverse manner. Although
management considers these assumptions to be reasonable based on
information available to it, they may prove to be incorrect. By
their very nature, forward‐looking statements involve inherent
risks and uncertainties, both general and specific, and risks exist
that estimates, forecasts, projections and other forward‐looking
statements will not be achieved or that assumptions on which they
are based do not reflect future experience. We caution readers not
to place undue reliance on these forward‐looking statements as a
number of important factors could cause the actual outcomes to
differ materially from the expectations expressed in them. These
risk factors may be generally stated as the risk that the
assumptions expressed above do not occur, but specifically include,
without limitation, risks relating to: general market conditions;
the Corporation's ability to secure financing on favourable terms;
and the additional risks described in the Corporation's latest
Annual Information Form, and other disclosure documents filed by
the Corporation on SEDAR+. The foregoing list of factors that may
affect future results is not exhaustive. When relying on our
forward‐looking statements, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. The Corporation does not undertake to update any
forward‐looking statement, whether written or oral, that may be
made from time to time by the Corporation or on behalf of the
Corporation, except as required by law.
SOURCE Big Rock Brewery Inc.
