MONCTON, NB, Aug. 28 /CNW Telbec/ - PDM Royalties Income Fund (or "PDM"
or the "Fund") (TSX: PDM.UN, PDM.DB) issued a clarification today concerning
the expected distribution policy of Imvescor Restaurant Group (or "IRG"), the
new publicly traded entity that will result from the conversion of the Fund to
corporate status and subsequent amalgamation with Imvescor Inc. (the
"Arrangement"), if such conversion is approved and the annual and special
meeting of unitholders to be held on September 4, 2009.
While the current trustees of the Fund (the "Trustees") cannot bind the
proposed board of directors of the new company -which will be formed upon the
Arrangement taking effect, it is anticipated that the board of IRG will set
dividend rates at levels which approximate the current annualized rate of
distributions from the Fund, subject to business conditions and the amount of
distributable cash each quarter. The current monthly distribution is set at
$0.05 per unit, which is equivalent to $0.60 per unit on an annualized basis.
All Trustees have been nominated to sit on the new board of directors of
Imvescor Restaurant Group, following approval of the transaction by
unitholders. In addition, all proposed directors of IRG understand and
acknowledge the desire of unitholders to continue to receive significant
distributions from the new company, in the form of dividends.
Investors are reminded that PDM has already stated publicly that,
following the completion of the Arrangement, IRG is expected to adopt a cash
management policy that will enable the company to pay regular dividends in
order to provide a significant level of current income to shareholders, while
providing the new company with flexibility to repay debt and/or repurchase
convertible debentures and shares in the market in a manner that will maximize
long term shareholder value.
Taxable investors in Canada are taxed on dividends at an attractive rate
compared to other forms of after-tax income. Investors should consult their
financial advisors to understand the impact on their personal tax situation of
receiving dividend income.
An investor presentation has been made available under the "Structure"
tab of the PDM website (http://www.pdmfundweb.ca) to assist unitholders in
understanding the Arrangement and IRG, the company that will result from the
amalgamation of PDM and Imvescor (and other entities).
With the Annual and Special Meeting of Unitholders fast approaching on
September 4, 2009, unitholders are encouraged to submit their form of proxy in
favour of the Arrangement before September 2, 2009 at 5:00 pm ADT (Atlantic
Time). Unitholders should vote using one of the quicker options available as
noted on the management form of proxy, preferably by telephone, internet or
fax, where applicable.
For more information on how to vote your proxy or to request a free copy
of the Management Circular and related materials, please contact the Fund's
Solicitation Agent, Kingsdale Shareholder Services, at 1-800-775-4067.
About PDM Royalties Income Fund
The Fund is a limited purpose open-ended trust established under the laws
of Ontario. The Fund indirectly owns the trademarks and intellectual property
for the Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) brands and
has licensed them to Imvescor in consideration for a royalty equal to 4% of
system sales for Pizza Delight(R) and Mikes(R) restaurants, and a royalty rate
of 6% for Scores(R) and Baton Rouge(R) restaurants.
Imvescor is a privately owned corporation, headquartered in Moncton, New
Brunswick. Pizza Delight(R) operates primarily in Atlantic Canada, where it
dominates the family/mid-scale segment. Mikes(R) and Scores(R) restaurants
operate primarily in Quebec in the family and casual dining segments and the
take-out and delivery segments. Baton Rouge(R) operates in the Province of
Quebec and Ontario in the casual dining segment.
Certain information regarding the Fund contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are not
statements of fact. Although the Fund believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to have been correct. The Fund cautions that
actual performance will be affected by a number of factors, many of which are
beyond the Fund's control, and that future events and results may vary
substantially from what the Fund currently foresees. Discussion of the various
factors that may affect future results is contained in the annual information
form of the Fund and the information circular in respect of the upcoming
annual and special meeting, which are available at www.sedar.com. The Fund
assumes no obligation to update such forward-looking statements, except as
required by applicable securities laws. The Fund's forward-looking statements
are expressly qualified in their entirety by this cautionary statement.
For further information:
For further information: Mélanie Joly, Cohn & Wolfe Public Relations,
(514) 845-2257 ext 247; William R. Lane, CMA, Executive Vice-President and
Chief Financial Officer, Imvescor Inc., (506) 853-8412; Kingsdale Shareholder
Services, 1-800-775-4067; Visit our web sites: www.pdmfund.ca,
www.imvescor.ca, www.pizzadelight.ca, www.mikes.ca, www.scores.ca,