Sir Royalty Income Fund T.SRV.UN

RE:SIR Corp. Announces it's No Longer Proceeding with its Offer

[Lazaros]

This was a pretty aggressive press release. It is almost as if they are angry with the reaction they received from unit holders. They also challenged the unamed party to go ahead and try to make an offer.

Some things to note:

it does not intend to participate in any strategic process that may be undertaken by the independent Trustees of the Fund.

This was very counterproductive in my point of view. They are saying that they won't cooperate with the Fund because they didn't get their way.

SIR, having been in discussions with the Fund since July 2020 , now believes that there is no realistic prospect of any transaction occurring in the foreseeable future, and that any strategic process that may be undertaken by the independent Trustees would not result in actionable incremental proposals. 

Pretty aggressive language. Unbecoming for a corporation.

And best of all...

If any third party wishes to make a proposal to the Fund, the situation has been very well-publicized and it is free to do so.

I believe the prospect of a larger chain (like an MTY, Recipe, etc) owning their trademarks and royalty stream (along with the loan) probably scares them to no end.

And for the grande finale...

so as to hopefully be in a position to survive the COVID-19 pandemic.

That's them blaming us.

SIR reminds Fund unitholders that the timing of any resumption of monthly distributions is uncertain. Any such distributions would have to be both fiscally prudent and permitted by SIR's senior lender and other applicable creditors, and are unlikely to occur in the medium term. In addition, the Fund would need to reassess appropriate distribution levels and in SIR's view it is not reasonable to expect that the Fund would be able to resume distributions consistent with the most recent distribution declared in March 2020 .

As if we didn't already understand this!