Lakeport Brewing Income Fund completes C$54.5 million initial public offering

Torys acted as counsel to the underwriters with a team that included Philip Brown, Karrin Powys-Lybbe, Victoria Carrier, Stephen Johnson and Matthew Cockburn (corporate), John Unger and Richard Johnson (tax), Nadine Côté, Mitch Frazer and Valerie Arthur (employment) and Dennis Mahony (environmental).

On June 21, 2005, Lakeport Brewing Income Fund (TSX: TFR.UN) completed its initial public offering of 5,455,534 units (including the subsequently exercised over-allotment option) at C$10 per unit for total gross proceeds of C$54,555,340. Based on the offering size and price, the units are expected to produce an initial annual yield of 10.75 percent through monthly distribution payments.

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

The proceeds of the offering, including the proceeds from the exercise of the over-allotment option, were used by the fund to indirectly acquire 80 percent of Lakeport Brewing LP. The remaining 20 percent interest in Lakeport Brewing LP will be retained by the current shareholder.

Lakeport, based in Hamilton, Ontario, produces 10 proprietary beer brands, including the top-selling Lakeport Honey Lager beer.