Ministry of Sound & Hed Kandi

29 Jun 2006 07:00

Core Business PLC (The)29 June 2006 PRESS RELEASEFor immediate release: 29 June 2006 Ministry of Sound Brand Licensing and Grant of Option The Core Business plc ("The Core Business" or 'the Company'), the innovativebeauty brand building business, has won a substantial licensing agreement fromMinistry 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 ofmen'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 willinclude men's hair care, skin care, shaving and sun care products. The Core Business will also develop a range of women's personal care productsfor music, entertainment and lifestyle brand Hed Kandi, which is owned byMinistry of Sound. The range will include hair, skin, face and body care and inthe longer term, colour cosmetics. Product ranges for both Ministry of Sound and Hed Kandi are expected to launchin April 2007. Reflecting the considerable potential of this licensing agreement, Ministry ofSound has sought and has been granted an option to subscribe for 2,119,822ordinary shares at a price of 4 pence per share, the equivalent of 5 per cent ofthe Company's issued share capital. The option may be exercised at any time byMinistry 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 further5% of the Company's ordinary share capital at the date at which the option isexercised, at a price of 6 pence per share, within two years of the signing ofthis agreement and an option to subscribe for up to a further 5% of theCompany'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 thisagreement. 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 enormouspotential. This agreement, together with the share options, follows a year ofworking closely with Ministry of Sound. It also comes hot on the heels of ourrecent announcement of five new consultancy contracts and the successful launchthis year of the sun care brand Blockhead, demonstrating the rapid progress weare making to implement our strategy to become a total beauty brand managementgroup." 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 ofproduct areas including consumer electronics, fashion and accessories. We haveevery expectation of replicating this success with The Core Business with arange of innovative, stylish toiletries." ENDS For further information, please contact: The Core Business plc Stirling Murray, Chief Executive 020 7483 4300May Jennings, Executive Brand Directorwww.thecorebusiness.co.uk Aquila Financial Ltd Peter Reilly 020 7202 2601Vivienne Macey 020 7202 2602www.aquila-financial.com Ministry of Sound Lucy Salisbury, Head of Products and Brand Licensing 020 7 740 8858www.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 priceWithinone 5 % of the Company's issued share capital (2,119,822 shares) 4pmonth Withintwo 5% of the Company's ordinary share capital at the date at 6pyears which the option is exercised Withinthree 5% of the Company's ordinary share capital at the date at 8pyears which the option is exercised 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 providesconsultancy 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 biggestindependent record label, international clubs and bars and a wide range ofbranded products including a top-selling consumer electronics range, fashion andaccessories.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 radioshow and nightclub events across the UK and worldwide.www.hedkandi.com This information is provided by RNS The company news service from the London Stock Exchange