LISTED: TSX
SYMBOL: SCU.UN
MISSISSAUGA, ON, Nov. 15 /CNW/ - Cara Operations Limited ("Cara") has
advised Second Cup Royalty Income Fund (the "Fund") that Cara has completed
the previously announced transaction pursuant to which Mr. Gabriel
Tsampalieros, the current Chairman of Second Cup and the former Chief
Executive Officer of Cara, was to purchase The Second Cup Ltd. ("Second Cup")
through Dinecorp Hospitality Inc. ("Dinecorp"), a corporation controlled by
him. Through Dinecorp, Mr. Tsampalieros has acquired all of the issued and
outstanding shares of Second Cup but not the Fund Units currently held in
Second Cup. Dinecorp also holds an unsecured, subordinated note of Cara in the
amount of $2.5 million which can be settled, after December 2, 2006, in units
of the Fund on demand by either Cara or the holder of note.
In addition, Dinecorp has also purchased all the international Second Cup
trade-marks held directly by Cara which were not transferred to the Fund in
connection with the Fund's initial public offering in December 2004.
Commented Mr. Tsampalieros, "I am delighted to have completed the
acquisition of this wonderful brand. I have been associated with Second Cup
for over 10 years, initially as a director when Cara first became a
shareholder and since 2002 as Chairman when Second Cup was acquired by Cara.
As the largest Canadian-owned company in the speciality coffee arena, Second
Cup is well positioned to capitalize on the opportunities available in this
growing segment. I look forward to cementing the established relationships
that I have with our president, Bruce Elliot, the Second Cup management team,
our franchisees and our Second Cup team mates. This is a win-win situation for
both Second Cup and Cara."
The Fund is an open-ended trust established under the laws of the
Province of Ontario. It holds, through an indirect wholly-owned subsidiary,
the Canadian trade-marks and other intellectual property and associated rights
used by Second Cup in connection with the operation of Second Cup cafDes in
Canada. For more information on the Fund, please visit
www.secondcupincomefund.com.
Second Cup is Canada's largest specialty coffee cafDe franchisor and
second largest retailer of specialty coffee, as measured by number of cafDes.
For the ultimate on-line coffee experience, visit www.secondcup.com. Cara
Operations Limited is Canada's leading integrated restaurant company.
%SEDAR: 00021352E
