On July 28, 2009, PDM Royalties Income Fund (TSX: PDM.UN) announced that it had entered into an agreement with Imvescor Inc. providing for the combination of the Fund’s and Imvescor’s businesses and the concurrent conversion of the Fund into a corporation, Imvescor Restaurant Group Inc., by way of a plan of arrangement. The plan of arrangement would consolidate the ownership of the trademarks and other intellectual property for the Pizza Delight, Mikes, Scores and Bâton Rouge restaurant brands (indirectly owned by the Fund) and the franchising and distribution businesses operated by Imvescor and its wholly-owned subsidiary, Imvescor Restaurants Inc.
As part of the transaction, the Fund’s corporate successor will issue shares to the former Imvescor shareholders, General Financial Corporation and Delighted Guests Limited, valued at approximately $69 million. Upon completion of the transaction, it is expected that the former public unitholders of the Fund would together own approximately 65% of the Imvescor Restaurant Group Inc. shares, with General Financial Corporation and Delighted Guests Limited owning the balance, or 35% of the shares.
PDM Royalties Income Fund was established to indirectly, through the PDM Royalties Limited Partnership, acquire the trademarks, trade names, operating procedures and systems, and other intellectual property and proprietary rights owned by Imvescor Inc.
Imvescor, headquartered in Moncton, New Brunswick, is a privately-owned corporation that operates franchised and corporate restaurants under the brand names Pizza Delight, Mikes Restaurants, Scores and Bâton Rouge.
Further information is found on Canada News Wire.