MISSISSAUGA, ON, April 3 /CNW/ - Second Cup Royalty Income Fund ("the Fund") is pleased to announce that it has completed the previously announced reorganization of the Fund's structure which will permit the Fund to maximize the cash available for distribution to unitholders.
Since the creation of the Fund in December 2004, the Fund owned the Second Cup trade-marks through intermediary corporate subsidiaries. This structure subjected these subsidiaries to income tax which, in turn, reduced the cash available for distribution to the Fund's unitholders. Under the new structure, implemented on April 2, 2007, the subsidiary corporations have been replaced with a limited partnership which provides the Fund with a "flow-through" structure. This structure will maximize the cash available for distribution by eliminating income taxes payable by the Fund and its subsidiaries until the proposed income tax legislation on income funds becomes applicable in 2011.
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 cafes in Canada. The Fund is listed on the Toronto Stock Exchange under the symbol SCU.UN. For more information on the Second Cup Royalty Income Fund please visit www.secondcupincomefund.com.
Second Cup is Canada's largest specialty coffee cafe franchisor and second largest retailer of specialty coffee, as measured by number of cafes. For the ultimate on-line coffee experience, visit www.secondcup.com.
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