Second Cup Income Fund
TSX : SCU.UN

Second Cup Income Fund

June 03, 2010 08:32 ET

Second Cup Income Fund Announces Approval of Conversion and Distribution for May 2010

MISSISSAUGA, ONTARIO--(Marketwire - June 3, 2010) -

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Second Cup Income Fund (TSX:SCU.UN) ("Fund") announced that the proposed conversion from an income trust structure to a public corporation ("Conversion") was approved by an overwhelming majority of unitholders at the annual and special meeting of the unitholders of the Fund held on June 2, 2010. 

"The Conversion will create a stronger entity with enhanced access to Canadian capital markets, greater ability to attract investors, greater flexibility regarding capital retention to fund the future growth of the business, and a simplified tax and legal structure" commented Stacey Mowbray, President and CEO of The Second Cup Ltd. ("Second Cup").

The Conversion is expected to be completed on or about January 1, 2011 at which time all the outstanding units of the Fund will be exchanged on a one-to-one basis for common shares of the new corporation, on a tax-deferred basis. The Conversion will be undertaken pursuant to a court approved plan of arrangement and, in addition to court approval, is subject to customary commercial conditions, including the receipt of regulatory approvals including The Toronto Stock Exchange. All current members of the board of trustees and senior management are expected to serve as directors and officers of the new corporation.

The Fund also announced that its Board of Trustees has approved a cash distribution of $0.07667 per unit for the month of May 2010, payable on June 30, 2010 to unitholders of record at the close of business on June 28, 2010.

About the Fund

The Fund is an open-ended trust established under the laws of the Province of Ontario. It holds the Canadian trade-marks and other intellectual property and associated rights used in connection with the operation of Second Cup cafés in Canada. Second Cup, an indirect wholly owned subsidiary of the Fund, is Canada's largest specialty coffee café franchisor, as measured by number of cafés. For the ultimate on-line coffee experience, visit www.secondcup.com.

For more information on the Second Cup Income Fund please visit www.secondcupincomefund.com.

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