TSX:SRV.UN - Post by User
Post by
logicandinertiaon Feb 16, 2021 7:13am
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Post# 32571163
KEG DISTRIBUTION REDUCTION WILL WEIGH ON SECTOR SENTIMENT
KEG DISTRIBUTION REDUCTION WILL WEIGH ON SECTOR SENTIMENTKEG reduces distribution this morning...
"It is very difficult to predict when The Keg will be permitted to reopen in the many communities in which it operates," said Mr. Kip Woodward, Chairman of the Fund. "It is equally difficult to predict what, if any, operating restrictions may be mandated by various government authorities upon reopening. Regrettably, the only prediction we can make with confidence is that it will be many months before The Keg can come close to achieving the sales levels it enjoyed pre-COVID-19. The reduction in sales during the disruption means the royalties to be paid to the Fund will also remain significantly lower. In light of this, the Trustees thought it prudent to revert to the previous distribution level of $0.035, initiated in the spring of 2020, in order to ensure adequate cash reserves remain in the Fund for the medium and long term."