MONCTON, NB, Feb. 23 /CNW/ - PDM Royalties Income Fund (the "Fund") (TSX: PDM.UN) announced today holders of $2,447,000 of convertible debentures have been converted into 244,700 Trust units.
This increases the number of Trust units issued and outstanding to 7,295,792. The recent trading of the Fund units above the $10.00 conversion price coupled with the attractive rate of distributions paid by the Fund are contributing factors to this early conversion of the debentures which were issued in November, 2006.
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 trade marks and intellectual property for the Pizza Delight(R), Mikes(R), Scores(R) and Baton Rouge(R) brands and has licensed them to Pizza Delight Corporation Ltd. in consideration for a royalty equal to 4% of system sales for Pizza Delight and Mikes, and in the case of Scores and Baton Rouge, the royalty rate is 6%.
Pizza Delight is a privately owned corporation, headquartered in Moncton, New Brunswick. It operates franchised and corporate restaurants under the brand names Pizza Delight, Mikes, Scores, and Baton Rouge restaurants. Pizza Delight operates primarily in Atlantic Canada, where it dominates the family/mid-scale segment. Mikes and Scores restaurants operate primarily in Quebec in the family and casual dining segments and the take-out and delivery segments. Baton Rouge has operations in Quebec and Ontario in the high end casual segment.