/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
MONCTON, NB, April 20 /CNW/ - PDM Royalties Income Fund (the "Fund") (TSX: PDM.UN and TSX: PDM.DB) today announced that its Board of Trustees has approved the adoption of a unitholder rights plan ("Rights Plan"). The Rights Plan is effective immediately but is subject to acceptance by the Toronto Stock Exchange. Unitholders of the Fund ("Unitholders") will be asked to approve the Rights Plan at the annual and special meeting of Unitholders scheduled to be held on June 7, 2007.
The adoption of the Rights Plan is not in response to or in anticipation of any pending, threatened or proposed take-over of the Fund. The Trustees approved the Rights Plan to ensure that Unitholders are treated fairly in the event of an unsolicited take-over bid for the Fund and afforded adequate time to consider and evaluate any such bid in order to make an informed decision as to whether or not to tender their units. The Rights Plan is also intended to provide the Trustees with sufficient time to identify and explore alternatives to any take-over bid to ensure that any proposed transaction is in the best interests of the Fund and Unitholders.
The Rights Plan is similar to other rights plans adopted by many Canadian income trusts and corporations. The issuance of Rights under the Rights Plan does not change the manner in which Unitholders hold or trade their units.
About the 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) and Mikes(R) brands and has licensed them to Pizza Delight Corporation Limited ("PDC") and Mikes Restaurants Inc., respectively, in consideration for a royalty equal to 4% of system sales generated by Pizza Delight(R) and Mikes(R) restaurants. The Fund also indirectly owns the trade marks and intellectual property for the Scores(R) Rotisserie and Ribs and Baton Rouge brands and has licensed each to Mikes in consideration for a royalty equal to 6% of system sales generated by Scores(R) Rotisserie and Ribs and Baton Rouge(R) restaurants.
PDC is a privately owned corporation, headquartered in Moncton, New Brunswick. It operates franchised and corporate restaurants under the brand names Pizza Delight(R), Mikes(R), Scores(R) Rotisserie and Ribs and Baton Rouge(R). Pizza Delight(R) restaurants operate primarily in Atlantic Canada, where PDC dominates the family/mid-scale segment. Mikes(R) restaurants operate primarily in Quebec in the casual dining segment and the take-out and delivery segments. Scores(R) Rotisserie and Ribs restaurants operate primarily in Quebec in the family dining segment and the take-out and delivery segments. Baton Rouge(R) restaurants operate in the casual dining segment in Ontario and Quebec.
For additional information on our four brands visit: www.pizzadelight.com, www.mikes.ca, www.scores.ca or www.batonrougerestaurants.com.