29 June 2006
Ministry of Sound Brand Licensing and Grant of Option
The Core Business plc ("The Core Business" or 'the Company'), the innovative beauty brand building business, has won a substantial licensing agreement from Ministry of Sound to develop a range of personal care products for its music, entertainment and lifestyle brands, "Ministry of Sound" and "Hed Kandi".
The Company has signed an agreement with Ministry of Sound to develop a range of men's grooming products to be marketed under the Ministry of Sound name. Ministry of Sound is a world renowned music and lifestyle brand. The range will include men's hair care, skin care, shaving and sun care products.
The Core Business will also develop a range of women's personal care products for music, entertainment and lifestyle brand Hed Kandi, which is owned by Ministry of Sound. The range will include hair, skin, face and body care and in the longer term, colour cosmetics. Product ranges for both Ministry of Sound and Hed Kandi are expected to launch in April 2007.
Reflecting the considerable potential of this licensing agreement, Ministry of Sound has sought and has been granted an option to subscribe for 2,119,822 ordinary shares at a price of 4 pence per share, the equivalent of 5 per cent of the Company's issued share capital. The option may be exercised at any time by Ministry of Sound within one calendar month of the signing of this agreement.
Ministry of Sound has been granted the option to subscribe for up to a further 5% of the Company's ordinary share capital at the date at which the option is exercised, at a price of 6 pence per share, within two years of the signing of this agreement and an option to subscribe for up to a further 5% of the Company's ordinary share capital at the date at which the option is exercised, at a price of 8 pence per share, within three years of the signing of this agreement.
Stirling Murray, Chief Executive of The Core Business, said:
"This is a highly exciting and very significant deal for The Core Business. Ministry of Sound and Hed Kandi are strong, vibrant brands with enormous potential. This agreement, together with the share options, follows a year of working closely with Ministry of Sound. It also comes hot on the heels of our recent announcement of five new consultancy contracts and the successful launch this year of the sun care brand Blockhead, demonstrating the rapid progress we are making to implement our strategy to become a total beauty brand management group."
Lucy Salisbury, Head of Products and Brand Licensing at Ministry of Sound said:
"Ministry of Sound and Hed Kandi have successfully diversified into a number of product areas including consumer electronics, fashion and accessories. We have every expectation of replicating this success with The Core Business with a range of innovative, stylish toiletries."
ENDS
For further information, please contact:
The Core Business plc
Stirling Murray, Chief Executive 020 7483 4300
May Jennings, Executive Brand Director
www.thecorebusiness.co.uk
Aquila Financial Ltd
Peter Reilly 020 7202 2601
Vivienne Macey 020 7202 2602
www.aquila-financial.com
Ministry of Sound
Lucy Salisbury, Head of Products and Brand Licensing 020 7 740 8858
www.ministryofsound.com
Notes to Editors
The Ministry of Sound option to subscribe for shares in The Core Business
Term | Percentage of the issued capital | Option price |
Within one month | 5% of the Company's issued share capital (2,119,822 shares) | 4p |
Within two years | 5% of the Company's ordinary share capital at the date at which the option is exercised | 6p |
Within three years | 5% of the Company's ordinary share capital at the date at which the option is exercised | 8p |
The Core Business
The Core Business was established in May 2004 by Stirling Murray to create, develop, launch and distribute personal care and beauty brands. It also provides consultancy and brand management services.
The Core Business listed on AIM in March 2006 under the ticker 'CORE'
www.thecorebusiness.co.uk
Ministry of Sound
Ministry of Sound is one of the most widely-recognised names in the music, entertainment and lifestyle industries. The brand includes Europe's biggest independent record label, international clubs and bars and a wide range of branded products including a top-selling consumer electronics range, fashion and accessories.
www.ministryofsound.com
Hed Kandi
Hed Kandi was established in 1999 as a record label specialising in house music, which has since developed into a lifestyle brand including merchandise, a radio show and nightclub events across the UK and worldwide.
www.hedkandi.com
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