BACKGROUND TO THE ACQUISTION OPPORTUNITY
On October 15, 2021, Junction Craft Brewing Inc. (“Junction” or the “Company”) filed a notice of intention to make a Proposal (an “NOI”) pursuant to the Bankruptcy and Insolvency Act (Canada).
On November 8, 2021, the Ontario Superior Court of Justice (Commercial List) (the “Court”) issued an order, which, among other things, (i) authorized the Trustee, on behalf of Junction, to undertake a sale solicitation process (the “Sale Process”) for the sale of Junction’s business and/or assets and (ii) approved a share purchase agreement, as amended (the “Stalking Horse Agreement”) for the acquisition of Junction’s business by the stalking horse bidder (the “Stalking Horse Bidder”).
OVERVIEW OF THE COMPANY
Junction was founded in 2011 and operates primarily as a brewer and seller of hand-crafted beers and other beverage products from an approximately 16,513 square foot leased premises located at 150 Symes Road, Toronto, Ontario (the “Premises”). Junction’s operations include: (i) the sale of its owned brewed beer under various brands, both at the Premise, through its on-site taproom and through retailers including the Liquor Control Board of Ontario and The Beer Store, and (ii) the production of beer, cold brew coffee, non-alcoholic sparkling beverages and spirit-based drinks, on a contract basis on behalf of approximately twenty different parties (the “Brewing Partners”). Junction is a turnkey operation that has invested substantial capital in the Premises since moving to it in 2018. Junction currently has approximately twenty-six employees and operates seven days a week.
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