Attention Business Editors:
CD Plus.com Acquisition Approved by Signature Brands Shareholders
TORONTO, July 29 /CNW/ - Signature Brands Limited (TSE: SBX, CDN:
SBXB.wt) (``Signature Brands' or ``The Company') today announced that it has
received shareholder approval for the acquisition of CD Plus.com Inc. (``CD
Plus.com'), one of Canada's leading online music retailers and one of the
country's largest music retail chains. The acquisition was approved at the
Signature Brands annual and special meeting of shareholders held yesterday. At
the same meeting, the shareholders agreed to a five for one share
consolidation. The Toronto Stock Exchange (the ``TSE') has already granted
conditional approval for the acquisition of CD Plus.com and related
transactions.
``When completed, this acquisition will represent an important milestone
for CD Plus.com,' said Lee Sienna, CEO and President of CD Plus.com.
``Signature Brands' shareholders will have a stake in one of the fastest
growing companies in the exciting sector of online music retailing. CD
Plus.com's established presence in this field, combined with its expanding
national retail store business, makes CD Plus.com a solid investment for
shareholders.'
The next step is to close the transaction, which is expected to happen
within a week. It will result in current shareholders of Signature Brands
holding approximately 8.3 per cent of the equity of Signature Brands, assuming
conversion of special shares by CD Plus.com shareholders.
When the transaction is closed, Signature Brands will begin proceedings
to change its name to CD Plus.com Ltd. to reflect the acquisition and the
shift in the Company's business focus. Signature Brands' symbol on the TSE
will also be changed to accommodate the name change.
About CD Plus.com Inc.
CD Plus.com is one of the largest music retailing chains in Canada,
operating a Canada-wide network of 150 pre-recorded music retail stores,
largely in secondary markets across the country. CD Plus.com's stores operate
under several trade names including CD Plus, AVE Entertainment, Big K, and
Urban Sound Exchange.
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. CD Plus.com's Internet site has been in
operation for more than three years and offers customers national reach and
support through the Company's national retail chain. CD Plus.com's management
is committed to the growth and expansion of the Internet sales channel. The
Company 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 online retailer in
Canada with the capability to offer fully encrypted and copyright-protected
music for sale through the Internet, working with Microsoft Canada to utilize
Microsoft Windows Media Technologies to sell single music tracks through its
Internet site.
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- 07/29/1999
For further information: Lee Sienna, President and CEO, CD Plus.com, (905) 629-9255, ir@cdplus.com; Helen Ryder or Tina Romano, Benchmark Communications, (416) 423-6605, helenr@benchmarkpr.com; Jim Fisher, Signature Brands Ltd., (416) 946-5591
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