04:06 PM EST, 01/07/2025 (MT Newswires) -- Big Rock Brewery ( BRBMF ) on Tuesday said it reached a binding debt settlement agreement with VN Capital Fund I, the lender for its its second lien term facility and its largest shareholder with a 28.8% stake.

The company said it will issue the fund nine-million shares under the debt agreement to settle a debt of $11.33 million. As well, the brewer said that with the settlement complete, it plans to raise between $6.3 million and $8.0 million in a private placement of shares priced at $1.00 each. It has already secured commitments for 4.5-million shares.

With the placement and the settlement, the company expects to issue at least 15.3-million shares, 219% more than its currently outstanding total.

"There is not expected to be a material change in the control of Big Rock following completion of the Private Placement and the Debt Settlement as VN Capital is, as of the date hereof, Big Rock's largest shareholder and will continue to be Big Rock's largest shareholder post-closing," the company said.

Big Rock shares were halted prior to its release and closed up $0.01 to $1.12 on the Toronto Stock Exchange.

Price: 1.12, Change: +0.01, Percent Change: +0.90