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Underlying Restaurant Brands Performing Well
MONCTON, NB, Sept. 30 /CNW/ - PDM Royalties Income Fund ("PDM" or the
"Fund") (TSX: PDM.UN), which indirectly owns the Pizza Delight(R), Mikes(R),
Scores(R) Rotisserie and Ribs, and Baton Rouge(R) restaurant brands, announced
today that it intends to purchase 50,000 to 100,000 units for cancellation
under a previously approved buyback program..
All of PDM's brands are performing at or above expectations. As a result,
the Fund is in a strong financial position and has generated surplus cash.
Given recent market conditions and the current high yield of the Fund,
Trustees believe that the units are undervalued, and that continuing the
buyback program is a prudent investment for a part of the Fund's cash on hand.
In December, 2007 PDM filed a notice with the Toronto Stock Exchange
("TSX") and received its approval to purchase, through the facilities of the
TSX for cancellation, up to 350,000 of its units ("Units"), representing
approximately 5% of the issued and outstanding Units. The Trustees and senior
management of the Fund are of the opinion that, from time to time, the
purchase of Units at the prevailing market price is a worthwhile investment
and in the best interests of the Fund and its unitholders. Prior to today's
announcement, the Fund had purchased 101,214 PDM units under its 350,000 unit
In accordance with the requirements of the TSX, the Fund will not
repurchase more than 2,674 Units per day unless the block purchase exception
is relied upon.
About the Fund
The Fund is a limited purpose open-ended trust established under the laws
of Ontario. The Fund makes monthly distributions of its available cash to
holders of units. The Fund indirectly owns the trade marks and intellectual
property for the Pizza Delight(R) and Mikes(R) brands and has licensed them to
Imvescor Inc. ("Imvescor") and Imvescor Restaurants Inc., respectively, in
consideration for a royalty equal to 4% of system sales generated by Pizza
Delight(R) and Mikes(R) restaurants. The Fund also indirectly owns the trade
marks and intellectual property for the Scores(R) Rôtisserie and Ribs and
Baton Rouge(R) brands and has licensed each to Mikes in consideration for a
royalty equal to 6% of system sales generated by Scores(R) Rôtisserie and Ribs
and Baton Rouge(R) restaurants.
Imvescor is a privately owned corporation, headquartered in Moncton, New
Brunswick. It operates franchised and corporate restaurants under the brand
names Pizza Delight(R), Mikes(R), Scores(R) Rôtisserie and Ribs and Baton
Rouge(R). Pizza Delight(R) restaurants operate primarily in Atlantic Canada,
where they dominate the family/mid-scale segment. Mikes(R) restaurants operate
primarily in Québec in the casual dining segment and the take-out and delivery
segments. Scores(R) Rôtisserie and Ribs restaurants operate primarily in
Québec in the family dining segment and the take-out and delivery segments.
Baton Rouge(R) restaurants operate in the casual dining segment in Ontario and
For further information:
For further information: William Lane, CMA, Chief Financial Officer, PDM
Royalties Income Fund, (506) 853-0990, firstname.lastname@example.org; www.pdmfund.ca;
www.imvescor.ca; www.pizzadelight.ca; www.mikes.ca; www.scores.ca;