Lakeport Brewing Income Fund

Lakeport Brewing Income Fund

June 21, 2005 09:54 ET

Lakeport Brewing Income Fund Completes $51,957,460 Initial Public Offering

HAMILTON, ONTARIO--(CCNMatthews - June 21, 2005) - Lakeport Brewing Income Fund (TSX:TFR.UN) announced today that it has successfully completed its initial public offering of 5,195,746 units at a price of $10 per unit for total proceeds of $51,957,460. Based on the offering size and price, the units are expected to produce an initial annual yield of 10.75% through the payment of monthly distributions. The units commenced trading today on the Toronto Stock Exchange under the symbol TFR.UN.

"We are gratified by the strong demand and confidence from the market in Lakeport's business," said Teresa Cascioli, Chief Executive Officer. "We intend to focus on our core business strengths and profitably grow market share in the value segment."

The proceeds of the offering were used to indirectly acquire 76.4 per cent of Lakeport Brewing Limited Partnership. The remaining 23.6% interest in Lakeport Brewing Limited Partnership will be retained by the current shareholder, initially in the form of a subordinated interest of 20% and an exchangeable interest of 3.6%. If the underwriters' overallotment option is exercised, the Fund will own, indirectly, 80% of Lakeport Brewing Limited Partnership and the current shareholder will retain a 20% subordinated interest.

The initial cash distribution for the period from June 21, 2005 to July 31, 2005 is expected to be paid on or before August 15, 2005 and is expected to be approximately $0.1194 per unit. Subsequently, the Fund intends to make regular monthly cash distributions of approximately $0.0896 per unit.

The offering was sold through an underwriting syndicate consisting of Scotia Capital Inc., RBC Dominion Securities Inc., Westwind Partners Inc. and National Bank Financial Inc.

Lakeport is an Ontario-based diversified brewing company focused on producing quality beer for the value segment of the take-home market. Lakeport produces 10 proprietary beer brands, one of which, Lakeport Honey Lager, is one of the top selling brands in The Beer Store. Lakeport has approximately 163 full-time employees at its production facilities in Hamilton, Ontario.

The final prospectus of Lakeport is available on SEDAR at

Forward-Looking Statements

This press release may contain forward -looking statements relating to expected future events and financial and operating results of the Fund that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward -looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's prospectus filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information

  • Lakeport Brewing Income Fund
    Teresa Cascioli
    (905) 523-1170