Priszm unit price plunges
Cuts distribution
Last Updated: Thursday, November 19, 2009 | 5:14 PM ET
CBC News
Toronto-based Priszm Income Fund's unit price fell almost 20 per cent Thursday.
The plunge followed the company's announcement it would suspend monthly payouts to unitholders in order to build up cash.
The units closed down 24 cents to 99 cents in morning trading on the Toronto Stock Exchange.
Priszm operates and franchises KFC, Taco Bell and Pizza Hut restaurants in Canada.
Its executive chairman is John Bitove, well-known Toronto businessman and sportsman.
It said it needed the cash to make capital improvements to its Yum! Restaurants International stores as required by franchise agreements. Priszm also said it would also use the cash to strengthen its balance sheet and to fuel future growth.
"Since the launch of Priszm in late 2003, we have returned more than $155 million to our unitholders, approximately two-thirds of which was distributed tax free," Bitove said in a release.
Priszm holds a 60 per cent interest in Priszm Limited Partnership, which owns and operates more than 400 quick service restaurants across Canada.
With files from The Canadian PressShare Tools
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