KITCHENER, ON, July 30, 2021 /CNW/ -
("Waterloo Brewing" or the "Company") today announced that it has reached a settlement agreement with the creditor impacted by the previously announced social engineering cyberattack against the Company that occurred in November 2019. Pursuant to the settlement agreement, the Company has agreed to pay the creditor $1,163,600, being half of the amount that was originally payable to such creditor and half of the proceeds of the Company's insurance claim in respect of the incident. The Company previously recorded a net loss on the misappropriation of funds in the amount of $1,869,595 in connection with this cyberattack. Accordingly, the Company will record a gain on misappropriated funds of approximately $900,000 in the second quarter of fiscal 2022.
The cyberattack involved creditor employee impersonation and fraudulent wire transfer requests by a third party which resulted in a wire transfer of approximately $2.1 million of the Company's funds to a fraudulent third-party account instead of the creditor. To date, the Company has not recovered any of the funds.
Following the cyberattack, the Company undertook a review of its internal systems and controls, including its computer networks, and such investigations confirmed that the Company's network was not compromised at any point.
In this age of ever-increasing and highly sophisticated cybersecurity threats, Waterloo Brewing is committed to utilizing all available means to protect its operations, customers, employee, and business information. Waterloo Brewing will continue to invest in its information technology infrastructure, security, controls, and training to minimize the risk of unauthorized activity and security threats.
The Company does not believe that the settlement amount to be paid with respect to this matter will have a material adverse effect on its consolidated financial condition, results of operations, or cash flows in future periods.
About Waterloo Brewing
Waterloo Brewing is Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Waterloo Brewing Ltd. (formerly Brick Brewing Co. Limited) was the first craft brewery to start up in Ontario and is credited with pioneering the present-day craft brewing renaissance in Canada. Waterloo Brewing has complemented its Waterloo premium craft beers with the popular Laker brand. In 2011, Waterloo Brewing purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark® and Margaritaville®. In addition, Waterloo Brewing utilizes its leading-edge brewing, blending, and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers, and ciders. Waterloo Brewing trades on the TSX under the symbol WBR. Visit us at www.WaterlooBrewing.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties, and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Company does not undertake to publicly update such forward-looking statements to reflect new information, future events, or otherwise.
SOURCE Waterloo Brewing Ltd.
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