VANCOUVER, Jan. 6, 2020 /CNW/ - A&W Food Services of Canada Inc. ("Food Services") announced today that it has filed an early warning report dated January 6, 2020 (the "Early Warning Report") with respect its ownership of securities indirectly exchangeable for limited voting units ("Limited Voting Units") of A&W Revenue Royalties Income Fund (the "Fund").

Prior to December 6, 2019, Food Services had ownership and control of securities indirectly exchangeable for 3,437,603 Units of the Fund, representing approximately 19.6% of the outstanding voting securities of the Fund.

On December 6, 2019, Food Services acquired ownership and control of 289,279 limited partnership units ("LP Units") of A&W Trade Marks Limited Partnership (the "Partnership"), which are indirectly exchangeable for 289,279 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). On January 5, 2020, Food Services acquired ownership and control of a further 611,858 LP Units of the Partnership which are indirectly exchangeable for 611,858 Limited Voting Units of the Fund. As a result of these transactions, Food Service's percentage interest in the outstanding voting securities of the Fund increased by approximately 4% on a diluted basis.

Following the transactions on December 6, 2019 and January 5, 2020, and assuming 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 4,338,740 Units of the Fund, representing approximately 23.6% of the outstanding voting securities of the Fund on a diluted basis.

Food Services acquired the 289,279 LP Units on December 6, 2019 at a price of $34.81 per LP Unit and the 611,858 LP Units on January 5, 2020 at a price of $38.02 per LP Unit, in each case, pursuant to the annual adjustment to the royalty pool as previously announced and further described in the Fund's news release dated December 6, 2019, a copy of which is filed under the Funds profile on SEDAR at www.sedar.com.

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 Limited Voting Units of the Fund.

For Further Information, and to obtain a copy of the Early Warning Report, please contact:

Don Leslie
Chief Financial Officer
604-988-2141
300 – 171 West Esplanade,
North Vancouver, B.C. V7M 3K9

The head office of the Fund is also located at the address noted above.

SOURCE A&W Food Services of Canada Inc.