Second Cup to get new corporate name as it moves to diversify beyond coffee
If shareholders approve, the corporate name will become Aegis Brands Inc.
The Second Cup Ltd. intends to change its name to Aegis Brands Inc. as part of a plan to diversify beyond coffee shops.
The Toronto-area company says the name change is subject to approvals from shareholders and the Toronto Stock Exchange, where its shares are listed.
Steven Pelton, who has been Second Cup's president and CEO since May, will be chief executive of Aegis Brands.
Aegis will own and operate the existing Second Cup Coffee Co. as one of a portfolio of brands.
The company says it's also seeking acquisitions in the foodservice, coffee and cannabis sectors.
Company posted 3rd quarter losses
The name change was announced as Second Cup reported a third-quarter loss as sales at its cafes fell from the same time last year.
The corporation posted a $762,000 net loss and a $62,000 adjusted net loss with about $6.7 million of revenue. System sales were $32.9 million and same-store sales, a key metric for retailers, fell 2.9 per cent.
Net loss was four cents per share and adjusted net loss per share was insignificant.
The adjusted loss excluded a reduction in the value of Second Cup's investment in National Access Cannabis warrants.
A year earlier, Second Cup had a $766,000 net profit, and $432,000 adjusted net profit with about $5.9 million of revenue and $35.7 million of system sales from its cafes.