A&W Revenue Royalties Income Fund Declares Cash Distribution for the Period from April 1, 2024 to April 30, 2024, Payable on May 31, 2024
May 07, 2024 at 04:00 am EDT
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A&W Revenue Royalties Income Fund (the Fund) declared a cash distribution of 16.0 cents per trust unit for the period April 1 to April 30, 2024. The distribution will be paid to unitholders of record at the close of business May 15, 2024 and will be payable on May 31, 2024. 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").
A&W Revenue Royalties Income Fund (the Fund) is a Canada-based company. The Fund is a limited purpose trust established to invest in A&W Trade Marks Inc. (Trade Marks), which through its interest in the A&W Trade Marks Limited Partnership (Partnership), owns the A&W trademarks used in the A&W quick service restaurant business in Canada. In return for licensing, A&W Food Services of Canada Inc. (A&W Food Services) to use its trademarks, Trade Marks receives royalties equal to 3% of the sales of A&W restaurants in the royalty pool. The total number of A&W restaurants in the royalty pool is 1,047. The Fund's capital management objectives are to have sufficient cash and cash equivalents to pay distributions to its unitholders, after satisfaction of its debt service and income tax obligations; provisions for general and administrative expenses; retention of reasonable working capital reserves, and amounts that may be paid by the Fund in connection with any cash redemptions of units.