VANCOUVER, BC, Jan. 5, 2021 /CNW/ - A&W Food Services of Canada Inc. ("Food Services") announced today that it has filed an early warning report dated January 5, 2021 (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 11, 2020, Food Services had ownership and control of securities indirectly exchangeable for 4,338,740 Units of the Fund, representing approximately 23.6% of the outstanding voting securities of the Fund.

On December 11, 2020, Food Services acquired ownership and control of 147,772 limited partnership units ("LP Units") of A&W Trade Marks Limited Partnership (the "Partnership"), which are indirectly exchangeable for 147,772 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, 2021, Food Services acquired ownership and control of a further 465,316 LP Units of the Partnership which are indirectly exchangeable for 465,316 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 2.4% on a diluted basis.

Following the transactions on December 11, 2020 and January 5, 2021, 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 4,951,828 Units of the Fund, representing approximately 26.0% of the outstanding voting securities of the Fund on a diluted basis.

Food Services acquired the 147,772 LP Units on December 11, 2020 at a price of $38.02 per LP Unit and the 465,316 LP Units on January 5, 2021 at a price of $28.52 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 11, 2020, a copy of which is filed under the Funds profile on SÉDAR 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.

SOURCE A&W Food Services of Canada Inc.