Business
Acquisition of Greensleeves
Acquisition of Greensleeves.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n Zest Group PLC\n07 March 2006\n\n7 March 2006\n\n Zest Group Plc\n\n Proposed Acquisition of Greensleeves Records Limited\n\n Placing of 83,333,334 Ordinary Shares at 3p per share\n\n Application for re-Admission to AIM\n\n\n\nThe Board of Zest announces today that the Company has conditionally agreed to\nacquire the entire share capital of an established, independent record label and\nmusic publisher which specialises in reggae music, Greensleeves Records Limited\n('Greensleeves') for a consideration of £3.25 million comprising a cash payment\nof £3,000,000 and the issue of 8,333,334 Ordinary Shares (valued at 3p per\nshare) conditional, inter alia, upon Admission. In addition, Greensleeves has\nagreed to acquire the property currently occupied by Greensleeves in the UK for\na consideration of £662,500. Acquisition of the Property is conditional upon\nthe acquisition of Greensleeves.\n\nGreensleeves is based in Isleworth, Middlesex, and has a promotions office in\nNew York. The company has an established presence in a number of the specialist\nreggae markets throughout the world and, in particular, the UK, the USA, Japan,\nFrance, Germany, Benelux, Canada and Scandinavia.\n\nThe Acquisition will make Zest one of the largest independent reggae publishers\nand record labels in Europe and the Directors believe that the Acquisition\nshould provide critical mass and enable the Company to achieve immediate\nprofitability.\n\nThe Zest management team intends to maximise Greensleeves' growth potential\nthrough the development of a number of business areas as follows:\n\n• Greensleeves owns a significant number of album masters, of which\napproximately 10 per cent. have not been released in CD format. The Company\nintends to release the majority of these album masters in CD format as well as\nmaking them available for electronic distribution.\n\n• Greensleeves has a significant number of album and single masters\nwhich have not been released as compilation albums and the Directors intend to\nexpand that area of the business.\n\n• The Directors believe that there is a market for further mid-priced\nalbums, based on Greensleeves' existing catalogue, which it intends to address.\n\n• Currently Greensleeves produces a number of compilations on vinyl, a\nlucrative area of the reggae and dance markets, and the Directors intend t...