SOURCE: Russell Breweries Inc.

Russell Breweries Inc.

July 04, 2015 11:33 ET

Russell Intends to Refinance Existing Debt

VANCOUVER, BC--(Marketwired - July 04, 2015) - Russell Breweries Inc. (TSX VENTURE: RB) (the “Company”) is pleased to announce that the Company and its wholly-owned subsidiary, Fort Garry Brewing Company Ltd. (“Fort Garry”), have each entered into a loan agreement with the Business Development Bank of Canada (“BDC”) whereby BDC has agreed to advance to the Company and Fort Garry $788,000 and $250,000 respectively (together, the “Loans”). The advance of funds under the Loans is conditional upon each of the Company and Fort Garry fulfilling certain conditions set out in the loan agreements, including each granting a general security interest over their respective assets. The Company intends to use the proceeds of its Loan to refinance its two existing loans in the aggregate principal amount of $731,000 (at annual interest rates of 10% and 9%). Fort Garry intends to use the proceeds of its Loan for the purchase of production equipment and to expand the Fort Garry operations which the Company anticipates may increase production by 20%. The interest on both Loans will be 6.15% per annum with a maturity date on the Company’s Loan being April 15, 2023 and a maturity date on Fort Garry’s Loan being April 15, 2025. The Loans are subject to approval of the TSX Venture Exchange.

Russell’s shares trade on the TSX Venture Exchange (TSX VENTURE: RB). The TSX-V has neither approved nor disapproved the form or content of this release.

About Russell Breweries Inc.

Russell Breweries Inc. is a leading Western Canadian brewer. It brews, markets, sells and distributes a diverse portfolio of award winning beers that are produced by its wholly owned regional breweries: Russell Brewing Company in British Columbia and Fort Garry Brewing Company in Manitoba. Both breweries are dedicated to producing high quality, flavourful ales and lagers. Russell Breweries Inc. is publicly listed on the TSX Venture Exchange (TSX VENTURE: RB).

Forward Looking Statements

This release includes certain statements that are deemed forward looking statements or forward looking information within applicable Canadian securities laws. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statement or information. Forward looking statements and information are statements that are not historical facts and are generally, but not always, identified by the words expects, plans, anticipates, believes, intends, estimates, projects, potential and similar expressions, or that events or conditions will, would, may, could or should occur. Although the Company believes the expectations expressed in such forward looking statements and information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward looking statements. Factors that could cause the actual results to differ materially from those in forward looking statements include: completion of the Loans and use of the proceeds of the Loans. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements and information. Forward looking statements and information are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward looking statements in the event that managements beliefs, estimates or opinions, or other factors, should change.

This news release is intended for distribution in Canada only and is not authorized for distribution to United States newswire services or for dissemination in the United States.

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