Business
Second Cup Royalty Income Fund Announces Strong 4th Quarter Same Cafe Sales Growth, Receives Tax Ruling for Reorganization
Second Cup Royalty Income Fund Announces Strong 4th Quarter Same Cafe Sales Growth, Receives Tax Ruling for Reorganization.
About this update from Aegis Brands Inc
[{"type":"text","content":"\n\n\n\nMISSISSAUGA, ON, Jan. 18 /CNW/ - Second Cup Royalty Income Fund (\"the\nFund\") is pleased to announce that it has completed another successful holiday\nseason. Same cafe sales growth for the 4th Quarter and the year ended December\n31, 2006 are expected to be 7.8% and 6.2% respectively. The Fund expects to\nrelease audited annual financial results on or before March 16, 2007.\n\n\n\"We are extremely pleased with our same cafe sales results for 2006, our\nstrongest in almost 10 years\" commented Bruce Elliot, President of The Second\nCup Ltd.. \"In particular, the 4th Quarter sales growth of 7.8% exceeded our\nexpectations. I wish to take this opportunity to thank our franchisees,\noperators and the Second Cup team for their efforts this year and most\nimportantly thank our customers for their ongoing patronage and support.\"\n\n\nAs previously announced, the Fund will make a distribution payment of\n$0.0867 per unit for the month of December 2006, to be paid on January 31,\n2007 to unitholders of record at the close of business on December 29, 2006.\n\n\nThe Fund would also like to report that it has received a favourable\nAdvance Income Tax Ruling from the Canada Revenue Agency with respect to the\npreviously announced proposed reorganization of the Fund's structure. Second\nCup Trade-Marks Inc., the administrator of the Fund, together with the Fund's\nadvisors, are currently reviewing the ruling to determine if it remains in the\nbest interests of the Fund and its unitholders to proceed with implementing\nthe reorganization given the proposed tax legislation regarding income trusts\nannounced by the Federal Government on October 31, 2006. A decision by\nmanagement on whether to move forward on the proposed reorganization is\nexpected to be made by the end of the Fund's first quarter.\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 c...