Business
Second Cup Royalty Income Fund announces completion of the reorganization of the Fund's structure
Second Cup Royalty Income Fund announces completion of the reorganization of the Fund's structure.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, April 3 /CNW/ - Second Cup Royalty Income Fund ("the\nFund") is pleased to announce that it has completed the previously announced\nreorganization of the Fund's structure which will permit the Fund to maximize\nthe cash available for distribution to unitholders.\n\n\nSince the creation of the Fund in December 2004, the Fund owned the\nSecond Cup trade-marks through intermediary corporate subsidiaries. This\nstructure subjected these subsidiaries to income tax which, in turn, reduced\nthe cash available for distribution to the Fund's unitholders. Under the new\nstructure, implemented on April 2, 2007, the subsidiary corporations have been\nreplaced with a limited partnership which provides the Fund with a\n"flow-through" structure. This structure will maximize the cash available for\ndistribution by eliminating income taxes payable by the Fund and its\nsubsidiaries until the proposed income tax legislation on income funds becomes\napplicable in 2011.\n\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 cafes in\nCanada. The Fund is listed on the Toronto Stock Exchange under the symbol\nSCU.UN. For more information on the Second Cup Royalty Income Fund please\nvisit www.secondcupincomefund.com.\n\n\nSecond Cup is Canada's largest specialty coffee cafe franchisor and\nsecond largest retailer of specialty coffee, as measured by number of cafes.\nFor the ultimate on-line coffee experience, visit www.secondcup.com.\n\n\n%SEDAR: 00021352E\n\n\n","length":1787,"tagName":"div"}]