VANCOUVER, BC, (June 22, 2005) – Keg Restaurants Ltd. (“KRL”) announced today that it has filed with the securities regulatory authorities in Canada a notice of intention to sell up to 250,000 units of The Keg Royalties Income Fund (TSX: KEG.UN) (the “Fund”). KRL may commence selling these units on or about June 29, 2005.
KRL currently holds securities convertible into 2,352,654 units of the Fund, or approximately 22.39% of the outstanding units of the Fund on a fully diluted basis. Upon completion of the proposed sale, there will be 8,403,500 outstanding public Fund units and 10,506,154 outstanding units on a fully diluted basis. KRL will hold securities convertible into 2,102,654 units of the Fund, or an approximate 20% interest in the Fund.
Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. Keg Restaurants Ltd. has been named one of the “50 Best Employers in Canada” by the Globe and Mail’s Report on Business Magazine for the past three years.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there be any sale of the Fund units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state, province of jurisdiction. The Keg Royalties Income Fund units have not been, and will not be registered under the U.S. Securities Act of 1993, as amended and may not be offered or sold in the United States absent registration or an application for exemption from the registration requirement under U.S. securities laws.
For further information:
Investor Relations Manager
Tel: (416) 646-4960
Not for distribution to U.S. News wire services or dissemination in the U.S.