Big Rock Brewery Income Trust is looking to reorganise the trust and its subsidiaries.

The trust said yesterday (15 August) that it will ask its unitholders to approve a reorganisation that would result in the existing business being carried on through a limited partnership owned directly by the trust.

The reorganisation, initially proposed last year and postponed due to income trust taxation changes, has been put back on the table "in the best interest of the unitholders", the trust said. Daily operations would not be affected by the change.

With respect to the proposed reorganisation, the trust also said that it has received a favourable Advance Income Tax Ruling from the Canada Revenue Agency. The reorganisation will reduce the income taxes paid and maximise the cash available for distribution to unitholders.

The trust, which owns Big Rock Brewery and its wholly-owned subsidiary Pine Creek Brewing, reported in May that a non-cash C$328,600 charge for unit based compensation resulted in the slightly lower consolidated net income in its first quarter of C$834,972 (US$774,305), compared to C$1.06m a year earlier.

The trust noted, however, that the comparable quarter in 2006 had been the highest for any first quarter to date.