MONCTON, NB, Sept. 25 /CNW Telbec/ -- PDM Royalties Income Fund (TSX: PDM.UN) ("PDM" or the "Fund") announced that the Nova Scotia Supreme Court (the "Court") has given a final order for the approval of a plan of arrangement (the "Plan of Arrangement") under Section 192 of the Canada Business Corporations Act by which PDM, 7209835 Canada Inc., Imvescor Inc. ("Imvescor"), Imvescor Restaurants Inc. and Imvescor's two shareholders, General Financial Corporation Ltd. and Delighted Guests Ltd. propose to form a new, publicly-traded corporation, which will be named Imvescor Restaurant Group Inc. The order was granted September 21, 2009.
The Plan of Arrangement was accepted by PDM's voting unitholders (the "Unitholders") at the Fund's annual and special meeting of Unitholders (the "Meeting"), held at the offices of the Fund in Halifax, Nova Scotia on September 4, 2009.
The transaction is now scheduled to close on or about October 14th, 2009. The shares of the newly created Imvescor Restaurant Group Inc. will be posted for trading on the Toronto Stock Exchange under the stock symbol IRG shortly after the closing.
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.