MONCTON, NB, Sept. 4 /CNW Telbec/ - PDM Royalties Income Fund ("PDM" or
the "Fund") (TSX: PDM.UN, PDM.DB) announces that the required majorities of
the unitholders of the Fund (the "Unitholders") voted in favour of the plan of
arrangement (the "Arrangement") by which PDM and 7209835 Canada Inc.
("PDMCo"), Imvescor Inc. ("Imvescor"), Imvescor Restaurants Inc. ("IRI") and
Imvescor's two shareholders, General Financial Corporation Ltd. ("GFC") and
Delighted Guests Ltd. ("DGL") propose to form a new, publicly traded
corporation to be named Imvescor Restaurant Group Inc. ("IRG"). The
Unitholders' vote took place at the annual and special meeting of Unitholders
held today at the offices of the Fund in Halifax, Nova Scotia. The Arrangement
will now be submitted to the Nova Scotia Supreme Court in late September for
"The outcome of today's vote is very positive for Unitholders going
forward. Should the Nova Scotia Supreme Court grant a final order for the
approval of the Arrangement, we anticipate that the Arrangement will be
completed no later than early October," said Brian Flemming, Chairman of the
board of trustees of PDM. "Additional information concerning the expected
closing timetable and trading details for the new IRG shares will be provided
later in September," he added.
The Fund also announces that GE Canada Equipment Financing G.P. ("GE")
has committed to loan IRG $ 24.5 million. The GE financing is anticipated to
close in early October.
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 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; Visit our web sites:
www.pdmfund.ca, www.imvescor.ca, www.pizzadelight.ca, www.mikes.ca,