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Big Rock Brewery Announces Divestiture of Etobicoke Brewery & Increased 2021 Capital Budget
Big Rock Brewery Announces Divestiture of Etobicoke Brewery & Increased 2021 Capital ...
About this update from Big Rock Brewery Inc.
[{"type":"text","content":"\n \n \n \n Big Rock Brewery Announces Divestiture of Etobicoke Brewery & Increased 2021 Capital Budget\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n Big Rock Brewery Announces Divestiture of Etobicoke Brewery & Increased 2021 Capital Budget\n \n \n Canada NewsWire\n \n \n \n \n \n Highlights:\n \n \n \n \n Sale of its\n \n Etobicoke\n \n brewery for total cash consideration of\n \n $2.1 million\n \n , net of transaction costs;\n \n \n Optimizes balance sheet by use of cash consideration to reduce lease liabilities by\n \n $1.4 million\n \n ;\n \n \n Continued ability to service\n \n Ontario\n \n demand through\n \n Liberty Commons\n \n location;\n \n \n Annual operating cash cost savings of\n \n $0.2 million\n \n , resultant margin expansion; and\n \n \n Upsizing of information technology (\"\n \n IT\n \n \") and digital transformation budget to\n \n $1.25 million\n \n , from\n \n $0.6 million\n \n .\n \n \n \n \n CALGARY, AB\n \n ,\n \n May 3, 2021\n \n /CNW/ -\n \n Big Rock Brewery Inc.\n \n (TSX: BR) (\"\n \n Big Rock\n \n \" or the \"\n \n Corporation\n \n \") is pleased to announce the signing of a definitive agreement for the sale of its\n \n Etobicoke\n \n brewery for total cash consideration of approximately\n \n $2.1 million\n \n , net of transaction costs (the \"\n \n Transaction\n \n \"). The Transaction includes all brewing and packaging equipment, excluding the bottling line which has been transferred for use at the Corporation's\n \n Calgary\n \n facility. The purchaser has also agreed to assume the Corporation's\n \n Etobicoke\n \n brewery building lease. The Transaction is expected to close on or before\n \n June 14, 2021\n \n .\n \n \n \n \n \n \n \n \n \n The Transaction is expected to result in a reduction of lease liabilities totalling\n \n $1.4 million\n \n , consisting of\n \n $1.1 million\n \n of the cash proceeds being applied as a full repayment of equipment lease liabilities associated with the divested assets and a reduction of\n \n $0.3 million\n \n upon assignment of the building lease to the purchaser.\n \n \n I...