LISTED: TSX
SYMBOL: SCU.UN
MISSISSAUGA, ON, Dec. 2 /CNW/ - Second Cup Royalty Income Fund (the "Fund") has announced that its initial public offering of 8,145,346 units of the Fund at a price of $10.00 per unit, for a total public offering of $81,453,460, closed today. Units of the Fund are now trading on the Toronto Stock Exchange under the symbol "SCU.UN". The initial public offering was co-led by Scotia Capital Inc. and BMO Nesbitt Burns Inc., with CIBC World Markets Inc. and TD Securities Inc. as additional members of the underwriting syndicate.
The Fund is an open-ended trust established under the laws of the Province of Ontario. It holds, through an indirect wholly-owned subsidiary, Second Cup Trade-Marks Inc. ("MarksCo"), the Canadian trade-marks and other intellectual property rights used by The Second Cup Ltd. ("Second Cup") in connection with the operation of Second Cup cafés in Canada. Second Cup is a wholly-owned subsidiary of Cara Operations Limited. Pursuant to license arrangements with Second Cup, the Fund receives, indirectly through MarksCo, a royalty based on system sales generated by 351 Second Cup cafés in Canada. The Fund will make monthly distributions of its available cash to unitholders as described in the Fund's prospectus. The first distribution to unitholders is expected to be on or before January 31, 2005 for the period from today to December 31, 2004, and is estimated to be $0.0821 per unit.
Bruce Elliot, President of Second Cup commented: "We are delighted by the overwhelming acceptance of the offering by the public and the investment community at large. In our view this widespread interest reflects the value of the Second Cup brand and the confidence of consumers and investors in Second Cup and its products. We look forward to serving our loyal customers in the future."
In connection with the initial public offering by the Fund, Second Cup has subscribed for and acquired 1,437,414 units of the Fund, representing 15% of a total of 9,582,760 issued and outstanding units.
Certain statements included in this release may be considered forward- looking. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that actual results will be consistent with such statements.
/For further information: please contact Rachel Douglas, Manager, Communications, Cara Operations Limited, (905) 405-6904/
