Business
Cara completes sale of the Second Cup Ltd. to former CEO of Cara
Cara completes sale of the Second Cup Ltd. to former CEO of Cara.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\n\nLISTED: TSX\nSYMBOL: SCU.UN\n\nMISSISSAUGA, ON, Nov. 15 /CNW/ - Cara Operations Limited (\"Cara\") has\nadvised Second Cup Royalty Income Fund (the \"Fund\") that Cara has completed\nthe previously announced transaction pursuant to which Mr. Gabriel\nTsampalieros, the current Chairman of Second Cup and the former Chief\nExecutive Officer of Cara, was to purchase The Second Cup Ltd. (\"Second Cup\")\nthrough Dinecorp Hospitality Inc. (\"Dinecorp\"), a corporation controlled by\nhim. Through Dinecorp, Mr. Tsampalieros has acquired all of the issued and\noutstanding shares of Second Cup but not the Fund Units currently held in\nSecond Cup. Dinecorp also holds an unsecured, subordinated note of Cara in the\namount of $2.5 million which can be settled, after December 2, 2006, in units\nof the Fund on demand by either Cara or the holder of note.\nIn addition, Dinecorp has also purchased all the international Second Cup\ntrade-marks held directly by Cara which were not transferred to the Fund in\nconnection with the Fund's initial public offering in December 2004.\nCommented Mr. Tsampalieros, \"I am delighted to have completed the\nacquisition of this wonderful brand. I have been associated with Second Cup\nfor over 10 years, initially as a director when Cara first became a\nshareholder and since 2002 as Chairman when Second Cup was acquired by Cara.\nAs the largest Canadian-owned company in the speciality coffee arena, Second\nCup is well positioned to capitalize on the opportunities available in this\ngrowing segment. I look forward to cementing the established relationships\nthat I have with our president, Bruce Elliot, the Second Cup management team,\nour franchisees and our Second Cup team mates. This is a win-win situation for\nboth Second Cup and Cara.\"\n\nThe Fund is an open-ended trust established under the laws of the\nProvince of Ontario. It holds, through an indirect wholly-owned subsidiary,\nthe Canadian trade-marks and other intellectual property and associated rights\nused by Second Cup in connection with the operation of Second Cup cafDes in\nCanada. For more information on the Fund, please visit\nwww.secondcupincomefund.com.\n\nSecond Cup is Canada's largest specialty coffee cafDe franchisor and\nsecond largest retailer of specialty coffee, as measured by number of cafDes.\nFor the ultimate on-line coffee ex...