A&W Food Services of Canada Inc. has entered into an agreement with Laurentian Bank Securities Inc. to complete a secondary offering of 373,300 units of A&W Revenue Royalties Income Fund (TSX: AW.UN) in a private placement on a bought deal basis at $39.25 per unit for gross proceeds to A&W Food Services of Canada of $14,652,025.
The transaction is expected to close on or about February 28, 2017, but not later than March 8, 2017.
The sale is being made at the request of certain indirect shareholders of the parent company of A&W Food Services of Canada who will receive the net proceeds from the sale of the units for their personal financial planning requirements.
A&W Food Services of Canada currently owns securities exchangeable for 3,733,000 units, representing approximately a 23.5% indirect interest in the fund. Following the exchange of these securities for units and the sale of the units, A&W Food Services of Canada will own securities exchangeable for 3,359,700 units or approximately a 21.1% indirect interest in the fund.
photo credit: A&W
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