Aegis Brands, parent company of The Second Cup, has announced it will defer the filing of its Annual Information Form, relying on blanket relief provided by the Canadian Securities Administrators and Ontario Instrument 51-102 – Temporary Exemption from Certain Corporate Finance Requirements.
The company says its management’s continued focus on protecting the health of the company’s customers and employees, and on supporting its network of franchisees, in response to the ongoing Covid-19 pandemic is responsible for the deferral.
Second Cup anticipates being able to complete and file the Annual Information Form by 30 April, 2020. The company expects to again use the blanket relief in respect of its interim financial report for the first quarter of 2020, which it anticipates filing on or before 28 June.
The blanket relief provides for up to a 45-day extension for periodic filings normally required to be made by reporting issuers during the period from 23 March 23 to 1 June, 2020.
The following material developments of Second Cup have occurred since 12 March, 2020, being the date of filing of its annual financial statements:
- 128 of Second Cup’s 244 cafés and all 19 Bridgehead coffeehouses have temporarily suspended operations in response to the Covid-19 pandemic.
- Second Cup has deferred the collection from franchisees of the accrued royalties and cooperative advertising fund contributions for the period of 23 February 23 to 21 March 2020, otherwise due on 31 March.
- Second Cup is supporting conversations on behalf of its franchisees with landlords and financial institutions to request deferrals of rent or loan repayments, as required.
- The company is working with the full network of Second Cup suppliers to arrange deferred payment terms to provide franchisees with additional flexibility to manage cash and payroll.
- Second Cup cafés across Canada that remain open are currently only offering take-out, delivery, and drive-through service.
Second Cup expects the ongoing Covid-19 pandemic, and events and circumstances resulting from that pandemic, to have a material impact on its business, operations, and financial performance for at least the first half of 2020, but this impact cannot be quantified at this time.
Founded in 1975, The Second Cup is a Canadian specialty coffee retailer operating franchised and company owned cafes across Canada.