MONCTON, NB, Oct. 22 /CNW Telbec/ -- Imvescor Restaurant Group Inc. ("IRG" or the "Company") (TSX: IRG, IRG.DB) announced today that its newly created board of directors (the "Board") held its first meeting on October 20th in Moncton, N.B. IRG was formed on October 10, 2009 and its shares began trading on the Toronto Stock Exchange on October 16, 2009, following the conversion of PDM Royalties Income Fund ("PDM") and its combination with Imvescor Inc.
At the meeting, the Board determined that it would consider the adoption of a cash management policy for the Company when it meets next in December. The Board anticipates announcing the particulars of such a policy by mid-December, including the particulars of when dividends will commence to be paid and how frequently they will be paid. While no decision has yet been made, IRG anticipates that its cash management policy may involve the payment of dividends on a quarterly basis, consistent with the approach of many dividend-paying public companies, which will differ from the monthly distribution policy of PDM.
"It is expected that IRG will adopt a cash management policy that will allow for the payment of regular dividends," stated Rino Volpé, Chairman of the Board of IRG. "The policy must also provide IRG with the flexibility to repay debt and/or repurchase convertible debentures and shares in the market in a manner that will maximize long term shareholder value," he added.
In developing IRG's cash management policy and planning for its implementation, the Board will examine several factors, including IRG's operating cash flows, its financial requirements, its available credit arrangements and associated restrictions and satisfaction of solvency tests under the Canada Business Corporations Act. "This thorough analysis will ensure that IRG's cash management policy benefits shareholders while providing a clearly defined framework for the operations of IRG and growth in new markets," concluded Mr. Volpé.
About Imvescor Restaurant Group
Imvescor Restaurant Group is a franchising company in the food services business that indirectly owns, through its subsidiary PDM Royalties Limited Partnership, the trademarks and intellectual property for the Pizza Delight(R), Mikes(R), Scores(R), and Baton Rouge(R) brands. 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. The shares of IRG are traded on the Toronto Stock Exchange under the stock symbol IRG.
Certain information regarding the Company 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 Company 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 Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Discussion of the various factors that may affect future results is contained in the information circular dated July 29, 2009 in respect of the annual and special meeting of PDM at which the combination transaction between PDM, 7209835 Canada Inc., Imvescor Inc., Imvescor Restaurants Inc. and Imvescor's two shareholders, General Financial Corporation Ltd. and Delighted Guests Ltd. was approved, which is available at www.sedar.com. The Company assumes no obligation to update such forward-looking statements, except as required by applicable securities laws. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.