VANCOUVER – A&W Food Services of Canada Inc. (“Food Services”) announced today that it has filed an early warning report dated January 5, 2019 (the “Early Warning Report”) with respect to its ownership of securities indirectly exchangeable for limited voting units (“Limited Voting Units”) of A&W Revenue Royalties Income Fund (the “Fund”), which are in turn exchangeable for Units of the Fund.
Prior to January 5, 2019, Food Services had ownership and control of securities indirectly exchangeable for 4,370,088 Units of the Fund, representing approximately 25.9% of the outstanding voting securities of the Fund on a fully diluted basis.
On January 5, 2019, Food Services acquired, by way of a private transaction, ownership and control of 627,514 limited partnership units (“LP Units”) of A&W Trade Marks Limited Partnership (the “Partnership”) at a price of $34.81 per LP Unit for an aggregate of $21,844,000. The LP Units are indirectly exchangeable for 627,514 Units of the Fund. As a result of this transaction, Food Service’s percentage interest in the outstanding voting securities of the Fund increased by approximately 4.8% on a partially diluted basis.
Following Food Services’ acquisition of 627,514 LP units of the Partnership on January 5, 2019, Food Services now holds securities that are indirectly exchangeable for 4,997,602 Units of the Fund, representing approximately 28.6% of the outstanding voting securities of the Fund on a fully diluted basis.
Food Services acquired the aforementioned securities for investment purposes only. Food Services may acquire additional securities of the Fund in the future and may continue to acquire, on a yearly basis, further LP Units of the Partnership which are indirectly exchangeable for Units of the Fund.
