Attention Business Editors:
Signature Brands Limited receives conditional approval from TSE for securities exchange with CD Plus.com Inc.
TORONTO, June 29 /CNW/ - Signature Brands Limited (''Signature Brands'')
is pleased to announce that it has received conditional approval from The
Toronto Stock Exchange (the ''TSE'') for the acquisition (the ''Securities
Exchange'') of CD Plus.com Inc. (''CD Plus'') and related transactions. The
transaction is subject to certain closing conditions, including approval of
shareholders of Signature Brands at an annual and special meeting of
shareholders to be held on July 28, 1999. Subject to adjustments, the
transaction will result in current shareholders of Signature Brands holding
approximately 8.5% of the equity of Signature Brands, assuming conversion of
special shares by CD Plus shareholders. Upon closing of the Securities
Exchange, the common shares of Signature Brands will be subject to the
reporting requirements of Section 19.09 of the TSE's General By-Law.
About CD Plus.com Inc.
CD Plus.com operates a Canada-wide network of pre-recorded music retail
stores in secondary markets across the country. Currently, the company
operates 102 stores nation wide under several trade names including CD Plus,
AVE Entertainment, Music Baron and Music City. The company also operates
Canada's leading music retailing Internet site, www.cdplus.com, which it
acquired in December 1998 as part of the acquisition of the 10-store CD Plus
retail chain. The distribution and warehousing facilities are in Winnipeg,
North Bay and Toronto.
CD Plus.com's Internet site has been in operation for over three years
and offers customers national reach and support through the Company's cross
Canada retail chain. CD Plus.com management is committed to the growth and
expansion of the Internet sales channel and has entered into marketing
arrangements with AOL Canada, Canada.com, Bid.com, Sprint Canada, and
Altavista.ca (as a part of the Double Click network) and is currently
negotiating additional agreements with several other marketing and content
partners. CD Plus recently announced that it will be the first on-line
retailer in Canada with the capability to offer fully encrypted and
copyright-protected music for sale over the Internet, working with Microsoft
Canada to utilize Microsoft Windows Media Technologies to sell single music
tracks through its Internet site.
CD Plus.com is one of the five largest music retailing chains in Canada.
The company was established in 1992, when the principal shareholder acquired
Rock Entertainment Accessories Inc., then a regional chain of music stores in
Northern Ontario. From 1992 to 1999, the company grew through acquisitions,
from a small regional chain of 12 stores to its current size of 102 locations
across Canada. The company has focussed and continues to focus on those
communities where ideally it does not compete with other national music
retailing chains.
About Signature Brands Limited
Signature Brands Limited is a publicly traded company. Its shares trade
on the Toronto Stock Exchange under the symbol SBX. In addition, there are
warrants outstanding exchangeable into common shares at 50 cents that trade on
the Canadian Dealing Network under the symbol SBXB.wt.
The information herein has not been approved or disapproved by regulatory
authorities
-0- 06/29/1999
For further information: Jim Fisher, Director, (416) 946-5591; Frank Fini, Director, (416) 860-8812
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Release sent courtesy of Canada NewsWire Portfolio Email.
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