Russell Breweries Inc.

Russell Breweries Inc.

December 24, 2010 13:04 ET

Russell Breweries Inc. Completes Third Tranche of Private Placement Offerings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2010) -


Russell Breweries Inc. (TSX VENTURE:RB) (the "Company") is pleased to announce that it has completed the third tranche of a private placement of units (the "Unit Offering") and a private placement of convertible debentures (the "Debenture Offering") announced previously on October 5, 2010 and October 25, 2010 (together, the "Offerings"). The first tranche of each of the Offerings closed on November 4, 2010 and the second tranche of each of the Offerings closed on December 3, 2010.

Under the Unit Offering, the Company issued 1,500,000 units (the "Units"), at a purchase price of $0.08 per Unit, for aggregate gross proceeds of $120,000. Each Unit is comprised of one common share and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one common share until December 23, 2012 at an exercise price of $0.15 per common share. Under the Debenture Offering, the Company issued convertible debentures (the "Convertible Debentures") in the aggregate principal amount of $51,750. The Convertible Debentures are convertible into common shares at a price of $0.15 per common share at any time from the date of issue until December 23, 2012 and are redeemable by the Company upon maturity at a price of $0.15. The Convertible Debentures bear interest at 10% per annum, payable quarterly in arrears.

Canaccord Genuity Corp. ("Canaccord") acted as agent for the Offerings and as consideration for its services received a cash commission equal to 10% of the gross proceeds from the Offerings and 221,400 warrants (the "Agent's Warrants"). Each Agent's Warrant entitles the holder, on exercise, to acquire one unit on the same terms as the Units for a price of $0.08 per unit until December 23, 2012.

The net proceeds of the Offerings will be used to reorganize long-term debt, to enhance marketing efforts and for general working capital purposes.

The securities issued pursuant to the Offerings will be subject to a hold period of four months and one day from the date of issue in compliance with securities laws and the policies of the TSX Venture Exchange, as applicable.

ABOUT THE COMPANY: Russell Breweries Inc. produces premium beers in Western Canada in breweries located in British Columbia and Manitoba. All products are held to the highest quality standards, brewed without any preservatives, ensuring that the passion that goes into crafting the beers comes through in the taste. Russell Breweries Inc. is a public company trading on the TSX Venture Exchange under the symbol "RB".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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