Canada: Brick Brewing supplements long term financing agreement
Brick Brewing announced on April 10 that it has obtained supplemental term financing from Roynat Capital. The agreement allows the Company to use the additional funds to finance capital expenditures already incurred over the past year to complete the previously announced packaging line installation at the Kitchener warehouse. "This financing will provide the Company with supplemental funding for the capital projects which are expected to increase our capacity and reduce the variable costs in our packaging operations," commented Graydon Moore, Chief Financial Officer. The supplemental financing is in the amount of $2.0 million and on similar terms and conditions as the Company's existing term debt with Roynat Capital. The Company anticipates drawing down these additional funds over the next month, which will bring the Company's total outstanding term indebtedness to Roynat Capital to approximately $5.5 million.
The Company requires the additional funding to increase plant capacity and operating efficiency at the new Kitchener facility by investing in additional filtration equipment, line speed enhancements and improved quality inspection technology. "The packaging line, which is currently undergoing start up testing, is expected to deliver both margin improvements and capacity, greater than originally contemplated," Moore added.
Brick Brewing Co. Limited is a regional brewer of award winning premium quality beers. The Company, founded by Jim Brickman in 1984, was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick has complemented its successful line of premium craft beers with other popular brands such as Laker, Red Cap and Formosa Springs Draft. Brick trades on the TSX under the symbol BRB. Visit us at www.brickbeer.com.
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