Brick Brewing is poised to buy back over a million of its own shares.

The Canadian brewer said yesterday (25 October) that it has received approval from the Toronto Stock Exchange to buy the tranche. The purchase represents around 5% of the shares in Brick Brewing, and will start today. The bid will terminate a year later, on 26 October 2007.

"Brick Brewing believes that the current market price of its common shares does not reflect the underlying value of its business and its future business prospects," the company said.

"Accordingly, Brick Brewing believes that the repurchase of its common shares represents an attractive investment and an appropriate use of corporate finances that should be beneficial to shareholders."

Earlier this year, Brick Brewing saw first-quarter income plunge 75%, thanks to increased costs and overheads at its packaging facility in Ontario. Total revenue rose in the period to C$16.1m (US$14.3m) from $13.4m.