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 final approval.
"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.