VANCOUVER, BC, Oct. 1, 2024
/CNW/ - A&W Revenue Royalties Income Fund (the "Fund")
(TSX: AW.UN) today declared a cash distribution of 16.0 cents per trust unit for the period
September 1 to September 30,
2024. The distribution will be paid to unitholders of record
at the close of business on October 15,
2024 (the "Record Date") and will be payable on October 21, 2024 (the "Payment Date"). This
distribution will remain payable on the Payment Date to unitholders
of record at the close of business on the Record Date even if the
previously announced strategic combination transaction between the
Fund and A&W Food Services of Canada Inc. ("Food Services") is
completed between the Record Date and the Payment Date.
This distribution will be taxed as a non-eligible dividend, as
the source of funds to pay the distribution is a dividend from
A&W Trade Marks Inc. ("Trade Marks").
Food Services will also receive a similar dividend from Trade
Marks on its investment in Trade Marks.
Food Services also announced today that it has declared a
dividend in the amount of $1.0
million to its shareholder. The dividend will be paid
out of Food Services' available working capital and is separate and
distinct from distributions declared by the Fund to unitholders of
the Fund.
Launched on February 15, 2002, the
Fund, through its investment in Trade Marks, is entitled to receive
royalties from Food Services in the amount of 3% of the sales of
the 1,047 A&W restaurants in the Royalty Pool. Cash
distributions are paid monthly. A&W is the second largest
quick-service hamburger restaurant chain in Canada. Operating
coast-to-coast, A&W restaurants feature famous trade-marked
menu items such as The Burger Family®, Chubby
Chicken® and A&W Root Beer®.
SOURCE A&W Revenue Royalties Income Fund