Business
Pizza Pizza Royalty Income Fund announces closing of $23.79 million offering of subscription receipts
Pizza Pizza Royalty Income Fund announces closing of $23.79 million offering of subscription receipts.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\n/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR\n\n\nFOR DISSEMINATION IN THE U.S./\n\n\nTORONTO, July 5 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund")\n(TSX: PZA.UN) announced today that it has successfully completed its\npreviously-announced offering of 2,600,000 subscription receipts.\n\n\nThe underwriters of the offering were TD Securities Inc., Canaccord\nCorporation, CIBC World Markets Inc., National Bank Financial Inc. and RBC\nDominion Securities Inc.\n\n\nThe offering was undertaken in connection with the agreement between the\nFund and Pizza Pizza Limited ("Pizza Pizza") to acquire Flying Pizza 73 Inc.\nand its affiliated companies (together, "Pizza 73"). The Fund will acquire the\ntrademarks and intellectual property associated with the Pizza 73 restaurant\noperations (the "Transaction"). The Transaction is expected to close on or\nabout July 24, 2007, subject to satisfaction of various conditions, including\nunitholder approval. A special meeting of unitholders of the Fund will be held\non July 20, 2007 at the Toronto Stock Exchange Broadcast Centre, 130 King\nStreet West, Toronto, Ontario at 10:00am EDT to approve the Transaction, among\nother things.\n\n\nThe proceeds of the offering will be held in escrow pending the closing\nof the Transaction. Upon release, the proceeds will be applied to satisfy part\nof the purchase price of the trademarks and intellectual property associated\nwith the Pizza 73 restaurant operations.\n\n\nThe subscription receipts will trade on the Toronto Stock Exchange under\nthe symbol "PZA.R" until the completion of the Transaction. The subscription\nreceipts will be exchanged for units on the closing date of the Transaction\nand thereafter the former holders of the subscription receipts will be\nentitled as unitholders to receive distributions from the Fund. Holders of the\nformer subscription receipts will be entitled to receive an amount per\nsubscription receipt, if any, equal to the per unit distribution paid or\npayable to the holders of the units in respect of all record dates occurring\nduring the period from the offering closing date to the Transaction closing\ndate, as if the subscription receipts had been converted to units immediately\nprior to such record dates. In no case will holders of s...