Toronto Stock Exchange: BPF.UN
VANCOUVER, BC, June 15,
2023 /CNW/ - Boston Pizza Royalties Income Fund (the
"Fund") (TSX: BPF.UN) announced today that it has received
Toronto Stock Exchange ("TSX") approval of a Notice of
Intention to Make a Normal Course Issuer Bid from June 20, 2023 to no later than June 19, 2024. The Normal Course Issuer Bid will
permit the Fund to repurchase for cancellation up to 400,000 units
of the Fund (the "Units"), being approximately 1.86% of the
Fund's issued and outstanding Units (as at June 6, 2023). The Fund has 21,521,463 Units
issued and outstanding as at June 15,
2023. The average daily trading volume of the Units for the
period between December 1, 2022 and
May 31, 2023 was 35,095 Units. In
accordance with the rules of the TSX, the maximum number of
Units that can be purchased on a daily basis by the Fund is
8,773 Units, subject to the block purchase exception.
"We are implementing a normal course issuer bid to capitalize on
potential buying opportunities that may arise," said Marc Guay, Chair of the Board of Trustees. "The
recent solid financial performance of Boston Pizza International
Inc. and the Fund, coupled with the Fund's growing cash balance and
strong yield, have motivated the Trustees of the Fund to consider
opportunistic share repurchases. This demonstrates our on-going
confidence in the long-term prospects of the business and our
commitment to delivering sustainable returns to the Fund's
unitholders."
The board of trustees of the Fund believes that, from time to
time, market conditions provide opportunities for the Fund to
acquire Units at attractive prices and that the purchases are an
appropriate use of funds that will enhance Unitholder value. The
Fund intends to finance purchases under the Normal Course Issuer
Bid from cash on hand.
The Fund has established an automatic securities purchase plan
with its broker, BMO Nesbitt Burns Inc., to allow for the
repurchase of Units under the Normal Course Issuer Bid at any time,
including when it ordinarily would not be active in the market due
to its own internal trading blackout periods, insider trading rules
or otherwise. The plan will terminate on the earliest of: (a) the
date on which the purchase limits specified in the plan have been
attained, (b) the Fund terminates the plan in accordance with
the terms of the plan, in which case the Fund will issue a press
release announcing such termination, and (c) June 19, 2024.
Purchases will be made on the open market through the facilities of
TSX, other designated exchanges and/or alternative Canadian trading
systems.
ABOUT US
The Fund is a limited purpose open ended trust with an
excellent track record for investors since its IPO in 2002.
Including the May 2023 distribution
which is payable on June 30, 2023,
the Fund will have paid out 245 monthly distributions and two
special distributions totaling $406.8
million or $25.27 per unit.
The Fund earns revenue based on the franchise system sales of the
377 Boston Pizza restaurants in the Fund's royalty pool.
Boston Pizza International Inc. ("BPI") is
Canada's number one casual dining
brand. The Boston Pizza brand has served communities from
coast-to-coast for 59 years since opening its first restaurant in
Edmonton, Alberta in 1964. Today
Boston Pizza proudly remains a Canadian company with its hundreds
of local franchise owners operating more dining rooms, sports bars
and patios than any other single brand in the country, along with
take-out and delivery. BPI has been recognized both as a
Franchisees' Choice Designation winner and a Platinum Member of
Canada's 50 Best Managed Companies
for many years.
The trustees of the Fund have approved the contents of this news
release.
SOURCE Boston Pizza Royalties Income Fund