Mr. Mikes Restaurants Corp. completes C$43.2M sale of its trademarks and other IP rights to Diversified Royalty Corp.

On May 21, 2019, Mr. Mikes Restaurants Corporation ("Mr. Mikes") completed its $43.2 million sale of its trademarks and certain other intellectual property rights to Diversified Royalty Corporation ("Diversified"). The purchase price includes a deferred amount of $4.95 million. Diversified licensed the Mr. Mikes Marks back to Mr. Mikes for 99 years in return for an initial $3.9 million per annum royalty payment.

The transaction was important to Diversified because it increased the company’s market capitalization and gave it a more diverse portfolio of royalty streams.

Mr. Mikes is a leading Canadian restaurant franchise with 38 locations across Canada.

Diversified is a multi-royalty corporation focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors across North America.

McCarthy Tétrault LLP advised Mr. Mikes with a team led by Robin Mahood that included Vincent Yip, Leah Whitworth, Bosa Kosoric and Michael Alty.