A pint for my friends!!Have enjoyed reading this BB. When the brewery moved out to the new location just off 52nd St. and Glenmore Tr. one of the ideas was to include a grille. It is excellent and reflects very favorably on the company and their primary product. The room is available for corporate gatherings outside of regular hours. Additionally, there are organized and very informative tours of the brewery running most days and these typically conclude at the grille...for a taste test of the product. There is a very small shop adjacent to the grille where BigRock promotional stuff can be purchased. I have two of the T shirts and they are terrific!
If you are in the area GO to the grille...if you can get in!
The share buybacks were part of an earlier initiative. We do not know when they last purchased stock but if they continue to buy at the CAN$4.10 area then I would call this a prudent use of funds. In dollar terms it is just a pittance anyway but it provideds a floor for the stock.
The private placement, however, is another matter. My best guess is that the company is looking at expanding market share by taking over a competitor. Probably in B.C. as it is close enough to world headquarters that the merger could produce administrative efficiencies. Also, BigRock has surplus land at the current site where brewing, bottling and shipping facilities could be expanded. So, I see some cash and maybe some stock being offered in a takeover then the balance being used for facilities expansion and marketing. An expansion into B.C. through takeover of competitor would also allow better distribution of existing BigRock product.
The stock is a good buy below CAN$4.50 provided they don't get buried by high operating costs this year...electric and gas come immediatly to mind.
Can I buy you a beer?