On December 25, 2019, but effective January 1, 2019, KRL received the remaining balance of the 2019 Additional Entitlement. The actual sales generated by the three new restaurants added to the Royalty Pool on January 1, 2019, were confirmed to be $17,290,000, approximately $1,290,000 or 8.1% more than the amount originally estimated. This resulted in KRL receiving an additional entitlement equivalent to 89,067 Fund units, and KRL having the right to exchange its units in the capital of the Partnership for 4,407,924 Fund units, representing 27.97% of the Fund units on a fully diluted basis. Combined with the January 1, 2020 Additional Entitlement, and assuming receipt of 100% of that Additional Entitlement, KRL will be entitled to the equivalent of 4,850,939 Fund units, representing 29.94% of the Fund units on a fully diluted basis.
Management of KRL has advised the Trustees of the Fund that it expects to open two restaurants prior to October 2, 2020, consisting of one corporate and one franchise restaurant in Canada. Management of KRL has further advised the Trustees that the scheduled opening of these new restaurants is conditional upon the timely receipt of required municipal approvals and construction permits.
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. KRL has been named one of the “50 Best Employers in Canada” by Aon Hewitt for the past seventeen years.
This press release may contain certain "forward looking" statements reflecting The Keg Royalties Income Fund's current expectations in the casual dining segment of the restaurant food industry. Investors are cautioned that all forward looking statements involve risks and uncertainties, including those relating to the Keg’s ability to continue to realize historical same store sales growth, changes in market and existing competition, new competitive developments, and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the Fund's financial results are detailed in documents filed from time to time with the provincial securities commissions in Canada.
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 or jurisdiction. The Keg Royalties Income Fund units have not been, and will not be registered under the U.S. Securities Act of 1933, 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.
The Trustees of the Fund have approved the contents of this press release.
For further information:
Ryan Bullock, Chief Marketing Officer
Tel: (416) 646-4960