VANCOUVER, Jan. 5, 2016 /CNW/ - A&W Food Services of Canada Inc. ("Food Services") announced today that it has filed an early warning report dated January 5, 2016 (the "Early Warning Report") with respect its ownership of securities indirectly exchangeable for units ("Units") of A&W Revenue Royalties Income Fund (the "Fund").

Prior to December 14, 2015, Food Services had ownership and control of securities indirectly exchangeable for 2,557,892 Units of the Fund, representing approximately 17.4% of the outstanding voting securities of the Fund.

On December 14, 2015, Food Services acquired ownership and control of 181,101 limited partnership units ("LP Units") of A&W Trade Marks Limited Partnership (the "Partnership"), which are indirectly exchangeable for 181,101 Units of the Fund.  This acquisition did not result in Food Services acquiring beneficial ownership of, or control or direction over, either (i) an additional 2% or more of the outstanding securities of the class of securities that was the subject of the most recent early warning report required to be filed by Food Services, or (ii) securities convertible into an additional 2% or more of the outstanding securities referred to at (i). Prior to January 5, 2016 and after the issuance of 181,101 LP Units on December 14, 2015, Food Services had ownership and control of securities indirectly exchangeable for 2,738,993 Units of the Fund, representing approximately 18.4% of the outstanding voting securities of the Fund.

On January 5, 2016, Food Services acquired ownership and control of 489,847 LP Units of the Partnership which are indirectly exchangeable for 489,847 Units of the Fund.  If Food Services exercises all of its exchange rights and all the LP Units held by Food Services, and other exchangeable securities already held by Food Services, are indirectly exchanged for Units of the Fund, Food Services would hold 3,228,840 Units of the Fund, representing approximately 21.0% of the outstanding voting securities of the Fund.

Food Services acquired the 181,101 LP Units on December 14, 2015 at a price of $24.69 per LP Unit and the 489,847 LP Units on January 5, 2016 at a price of $26.26 per LP Unit, in each case, by way of private placement. These issuances are exempt from the prospectus and registration requirements pursuant to section 2.42 of National Instrument 45-106 – Prospectus and Registration Exemptions. 

Food Services acquired the aforementioned securities for investment purposes only. Food Services may acquire additional securities of the Fund in the future and expects to continue to acquire, on a yearly basis, further LP Units of the Partnership which are indirectly exchangeable for Units of the Fund.

SOURCE A&W Food Services of Canada Inc.