TSX Trading Symbol: "MTY"
MONTREAL, Dec. 17 /CNW Telbec/ - MTY Food Group Inc. ("MTY" or the
"Company"), franchisor and operator of over 1,700 quick service
restaurants, announced today that its wholly-owned subsidiary MTY Tiki
Ming Enterprises Inc. has acquired a 51% interest in a 60,000 square
feet food processing plant located in the vicinity of the city of
Quebec, PQ, through 7687567 Canada Inc., a newly formed entity.
Total consideration for the land, building and equipment is $3.3
million, which is entirely leveraged. As part of the transaction, one
of the minority shareholders will bring their existing food processing
business, client base and expertise to the plant in addition to
managing daily operations. MTY will provide financing to fund working
capital requirements up to a maximum of $1 million. The plant is
currently in operation at about 30% of its capacity and has generated
sales of approximately $7.5 million in the last 12 months.
This acquisition symbolizes MTY's continuous efforts to provide its
franchise system with quality products at consistent prices. MTY has
not committed to any minimum volume of business with 7687567 Canada
Certain information in this News Release may constitute
"forward-looking" information that involves known and unknown risks,
uncertainties, future expectations and other factors which may cause
the actual results, performance or achievements of the Company or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking information. When used in this News Release, this
information may include words such as "anticipate", "estimate", "may",
"will", "expect", "believe", "plan" and other terminology. This
information reflects current expectations regarding future events and
operating performance and speaks only as of the date of this News
Release. Except as required by law, we assume no obligation to update
or revise forward-looking information to reflect new events or
circumstances. Additional information is available in the Company's
Management Discussion and Analysis, which can be found on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
MTY Food Group Inc.
Stanley Ma, Chairman, President & CEO
SOURCE MTY Food Group Inc.
For further information: For further information:
For more information please contact Jean-Francois Dube, Investor Relations at 1-450-226-8475 or by email at email@example.com or visits our website: www.mtygroup.com or visit SEDAR's website at www.sedar.com under the Company's name.