The Keg Royalties Income Fund announces Special Cash Distribution
VANCOUVER, British Columbia, Dec. 18, 2018 (GLOBE NEWSWIRE) — The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) today announced that a Special Cash Distribution of $0.03 per unit has been declared and is payable to unitholders of record as at December 31, 2018. The Special Cash Distribution will be paid to unitholders on January 31, 2019 and treated as an eligible dividend that will be included in the Fund’s December 31, 2018 year-end for tax purposes.
“The same store sales growth consistently delivered by The Keg again so far this year, has generated significant incremental royalty income to the Fund,” said Mr. Kip Woodward, Chairman of the Fund. “We are pleased to share this incremental income with the Fund’s unitholders, in the form of this Special Cash Distribution, while at the same time maintaining adequate levels of working capital and a cash balance in excess of $2 million.”
The Fund is a limited purpose, open-ended trust established under the laws of the Province of Ontario that, through The Keg Rights Limited Partnership (the “Partnership”), a subsidiary of the Fund, owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd. (“KRL”). In exchange for use of those trademarks, KRL pays the Fund a royalty of 4% of gross sales of Keg restaurants included in the royalty pool.
With approximately 10,000 employees, over 100 restaurants and annual system sales of approximately $650 million, Vancouver-based KRL 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 sixteen years.
CONTACT: For further information contact: Neil Maclean Telephone: 604-276-0242 E-mail: email@example.com www.kegincomefund.com