Big Rock Brewery Income Trust

Big Rock Brewery Income Trust


August 15, 2007 16:05 ET

Big Rock Brewery Income Trust to Proceed With Reorganization

CALGARY, ALBERTA--(Marketwire - Aug. 15, 2007) - Big Rock Brewery Income Trust (TSX:BR.UN) (the "Trust") today announced that it will be calling a Special Meeting of Unitholders where Unitholders will be asked to approve a reorganization of the Trust and its subsidiaries. The reorganization would result in the existing business being carried on through a limited partnership directly owned by the Trust. The reorganization was initially proposed by the Trust on June 27, 2006. However, the Trust decided to postpone the reorganization following the income trust taxation changes announced on October 31, 2006 in order to fully understand the implications of such taxation changes. After considering the various alternatives, the Trust has concluded that it is in the best interest of the Unitholders to proceed with the reorganization at this time.

The Trust would also like to report that it has received a favourable Advance Income Tax Ruling from the Canada Revenue Agency with respect to the proposed reorganization of the Trust's structure.

The proposed reorganization, which has been adopted by a number of other income trusts, will provide the Trust with a "flow-through" structure that will maximize the cash available for distribution to Unitholders by reducing the income taxes paid under the current structure. The reorganization is conditional on obtaining a number of regulatory and third party approvals.

From a Unitholder's perspective, the reorganization will not result in a change to the number, type or ownership of outstanding Units of the Trust. Further, the reorganization will have no impact on the daily operations of the business.

A detailed description of the reorganization will be contained in the Notice of Meeting and Management Information Circular that will be mailed to Unitholders in connection with the Special Meeting. The Management Information Circular will also be made available on SEDAR.

Big Rock is a regional producer and marketer of craft beers, headquartered in Calgary, Alberta, Canada. Big Rock's products are available in draught, bottles and cans. The Company also produces or distributes cider and cooler products. Big Rock products are marketed in seven provinces and three territories in Canada.

Contact Information

  • Big Rock Brewery
    Ken Barbet
    President & CEO
    (403) 720-3239
    Big Rock Brewery
    Tim Duffin, C.A.
    Chief Financial Officer
    (403) 720-4473