Lakeport Brewing Income Fund Completes IPO

On June 21, 2005, Lakeport Brewing Income Fund (Fund) completed an initial public offering of trust units of the Fund for gross proceeds of approximately $55 million (including the proceeds from the subsequently exercised over-allotment option). The proceeds of the offering were used by the fund to indirectly acquire 80 per cent of the securities of a limited partnership that was established to acquire the business of Lakeport Brewing Corp., an Ontario-based diversified brewer and the third-largest supplier of domestic beer to the Ontario take-home market. The remaining interest in the limited partnership is held indirectly by Teresa Cascioli, chairman and CEO.

The offering was underwritten by a syndicate consisting of Scotia Capital Inc., RBC Capital Markets, Westwind Partners Inc. and National Bank Financial Inc. In connection with the offering, Lakeport Brewing Limited Partnership entered into a $15 million term loan and a $5 million revolving credit facility with National Bank of Canada.

The Fund was represented by Stikeman Elliott LLP with a team that included Rod Barrett, David Weinberger, Timothy Chubb and Michael Burkett (corporate and securities), Susan Thomson (tax), and Ron Ferguson, Kenton Rein and Aaron Fransen (banking).

The underwriters were represented by Torys LLP with a team that included Phil Brown, Karrin Powys-Lybbe, Victoria Carrier, Stephen Johnson and Matt Cockburn (corporate and securities), and John Unger and Richard Johnson (tax). Lakeport's mezzanine lender, VenGrowth Private Equity Partners Inc. and its affiliates were represented by in-house counsel, Jay Heller and Ryan Farquhar; by Goodmans LLP with a team that included Stephen Pincus and Gesta Abols (corporate and securities) and Jon Northup and Sam Tyler (tax); and by Catherine Wade of Heenan Blaikie LLP.

The lender, National Bank of Canada, was represented by Miller Thomson LLP with a team that included Maurice Fleming and Henry White (banking).