SIR Corp. Sells 750,000 Units of SIR Royalty Income Fund to Fund Restaurant Expansion and Renovation Program

BURLINGTON, ON, Aug. 24, 2016 /CNW/ - SIR Corp. ("SIR") today announced that on August 24, 2016 it sold 750,000 units ("Units") of SIR Royalty Income Fund (TSX: SRV.UN) (the "Fund"). SIR sold the Units primarily to invest the net proceeds in new restaurants and/or in the renovation of existing restaurants, most of which are currently contributing to the Fund's royalty income stream.  

The transaction took place through the facilities of Pure Trading on August 18, 2016 with the disposition closing on August 24, 2016. The Units were disposed at a price of $14.15 per Unit for an aggregate sale price of $10,612,500.  The disposition of the Units was a control block sale undertaken pursuant to section 2.8 of National Instrument 45-102 Resale of Securities ("45-102"). The 750,000 Units sold are the full amount of the Units identified for distribution under this 45-102.

The 750,000 Units sold by SIR represent approximately 9.0% of the presently issued and outstanding Units of the Fund.  Immediately prior to the disposition, SIR owned 2,811,097 Exchangeable Class A GP Units of the LP, which were economically equivalent to and exchangeable on a one for one basis into Units.  Immediately before the disposition, the 2,811,097 Class A GP Units represented the equivalent of approximately 26.93% of the issued and outstanding Units on a fully diluted basis.  SIR exchanged a total of 750,000 Class A GP Units for 750,000 Units immediately prior to the disposition, such Units representing approximately 9.0% of the issued and outstanding Units.  Immediately following completion of the disposition, SIR owns 2,061,097 Class A GP Units, representing the equivalent of approximately 19.75% of the issued and outstanding Units on a fully diluted basis.  The disposition decreases SIR's position in the Units of the Fund by approximately 7.18%.

SIR holds Class A GP Units for investment purposes and in connection with its operation of its restaurant business, which produces revenues from which the LP and the Fund derive their income via a trademark License and Royalty Agreement entered into in connection with the Fund's IPO.  SIR may, depending on the market and other conditions, increase or decrease its beneficial ownership, control or direction over Units of the Fund, or securities of the LP, through market transactions, private agreements, treasury issuances, exercises of options, convertible or exchangeable securities or otherwise.

SIR's early warning report related to the disposition above (the "EWR") was filed on SEDAR under the Fund's profile on August 24, 2016. For further information or a copy of the EWR, please contact Jeff Good, Chief Financial Officer at 905-681-2997. SIR's head office is located at 5360 South Service Road, Suite 200, Burlington, Ontario, L7L 5L1.  The Fund's head office is located at 5360 South Service Road, Suite 200, Burlington, Ontario, L7L 5L1. The Fund is listed on the Toronto Stock Exchange under the symbol "SRV".

About SIR Corp.
SIR is a privately held Canadian corporation that owns a portfolio of 60 restaurants and one seasonal retail outlet in Canada. SIR's Concept brands include: Jack Astor's Bar and Grill®, with 40 locations; Scaddabush Italian Kitchen & Bar®, together with Alice Fazooli's®, for a total of six locations; and Canyon Creek®, with eight locations.  SIR also operates one-of-a-kind "Signature" brands in downtown Toronto, including Reds® Wine Tavern, Reds® Midtown Tavern, Far Niente®/FOUR®/Petit Four®, and The Loose Moose®. All trademarks related to the Concept and Signature brands noted above are used by SIR under a License and Royalty Agreement with SIR Royalty Limited Partnership in consideration for a Royalty, payable by SIR to the Partnership, equal to six percent of the revenue of the 57 restaurants currently included in the Royalty Pool. SIR also owns Duke's Refresher® & Bar in downtown Toronto, one seasonal Signature restaurant, Abbey's Bake House®, and one seasonal retail outlet, which are not currently part of the Royalty Pool. For more information on SIR Corp. or the SIR Royalty Income Fund, please visit   

About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the province of Ontario that receives distribution income from its investment in the SIR Royalty Limited Partnership and interest income from the SIR Loan. The Fund intends to pay distributions to unitholders on a monthly basis.

SOURCE SIR Royalty Income Fund

For further information: Jeff Good, Chief Financial Officer, Tel: 905-681-2997; Bruce Wigle, Bay Street Communications, Tel: 647-496-7856


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890