BURLINGTON - SIR Corp. ("SIR") announced 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.
Also read, Restaurant Brands International Inc. announces master franchise joint venture to develop and grow the Tim Hortons® brand in the Philippines. 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". Source SIR Royalty Income Fund
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