MONCTON, N.B., June 8 /CNW Telbec/ - PDM Royalty Income Fund ("PDM" or
the "Fund") (TSX:PDM.UN) announced today that it is evaluating its strategic
options relative to the future financial and operating structure of the Fund
in view of impending changes to the taxation structure of income funds
scheduled to take effect in 2011. Strategic options open to the Fund include
changes to the financial and operating structure of the Fund and its
relationship with Imvescor Inc., the related restaurant operating company.
Variations may also include changes to the Fund's taxation status and
distribution policy. The timing of the strategic review is related to the
recent economic climate, which may make it in the best interest of unitholders
to consider implementing certain strategic options now rather than nearer the
effective date of the taxation legislation in 2011.
In light of its ongoing deliberations, the Fund has requested that the
Toronto Stock Exchange ("TSX") permit it to postpone its annual meeting of
unitholders originally scheduled for June 30th, 2009. The annual meeting is
now anticipated to be held no later than July 31st, 2009. This delay will
allow the Trustees of PDM to conclude their review of the Fund's strategic
options and, if a decision is reached to propose an option to unitholders, to
include the details in a single mailing to the unitholders for the meeting.
The Trustees will issue a further news release once the outcome of the
Fund's assessment of its strategic options is determined. A date for the
annual meeting of unitholders will be set at that time.
About PDM Royalties Income Fund
The Fund is a limited purpose open-ended trust established under the laws
of Ontario. The Fund will make monthly distributions of its available cash to
holders of units. 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 and Mikes restaurants, and a royalty
rate of 6% for Scores and Baton Rouge 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), and Baton Rouge(R) restaurants.
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 dated March 30, 2009 which is available at www.sedar.com. 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; Or visit our web sites: www.pdmfund.ca,
www.imvescor.ca, www.pizzadelight.ca, www.mikes.ca, www.scores.ca or