Snocone Systems Inc. Signs Letter of Intent to Acquire Who's Your Daddy, Inc. Friday February 25, 9:00 am ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 25, 2005--Snocone Systems Inc. (OTCBB: SCOS - News; "Snocone" or the "Company"), is pleased to announce that it has signed a Letter of Intent ("LOI") to acquire 100% of the shares of Who's Your Daddy, Inc. ("Who's Your Daddy") for fifty per cent of the shares of Snocone in a share for share exchange. ADVERTISEMENT
The LOI is subject to due diligence by both parties and the receipt of a $2 million private placement financing, by the Company, prior to closing. In addition, the Company expects to complete a financing of an additional $5 million within the year. Following the closing, the Company will change its name to Who's Your Daddy Licensing, Inc.
Who's Your Daddy designs and licenses a variety of products centered around our trademark protected brand, "Who's Your Daddy", which appeals to young men and sports fans who strive for "style with authority". Who's Your Daddy, the company, holds trademark rights to "Who's Your Daddy" in the United States, Canada, Europe and is in the process of obtaining trademark rights in Australia and Japan.
Who's Your Daddy clothing is available at several major retailers, including Anchor Blue (formerly Miller's Outpost), Kohl's, Mervyn's, Burlington Coat Factory, TJ Maxx and Marshall's, and will soon be available through Who's Your Daddy website, www.theclothingline.com. The business strategy behind Who's Your Daddy focuses on maintaining the edge, energy and humor behind the Who's Your Daddy brand while continuing to build brand awareness and recognition. The Who's Your Daddy brand is uniquely positioned in mass-market retail outlets, offering cutting edge designs with a high quality product at mass market prices. The Who's Your Daddy target market includes young adult males, sports fans and gift buyers for these groups. As part of the Who's Your Daddy strategy, Who's Your Daddy has developed products and events that appeal to these groups and continues to assess opportunities to expand their products and markets. While working on introducing a current product line into wider retail distribution, Who's Your Daddy is expanding the current product line at existing retail locations to include women, junior and toddler lines.
An important part of the Who's Your Daddy business strategy has been licensing the brand in the United States and Europe. The Who's Your Daddy brand has been licensed to Amazon Leisure Ltd, Ireland, for which Who's Your Daddy has received a royalty of 8% on sales of $9,500,000 for the past 3 years. Who's Your Daddy has achieved gross revenues of approximately $930,000 in total revenues since 2002. The Company believes that, with the financing of $2,000,000 and the marketing plan outlined for the business in the coming year, the Company can significantly increase its revenues over the next year.
To ensure the quality of its brand, Who's Your Daddy has maintained approval over all products derived from its license agreements. Who's Your Daddy anticipates that licensing will be a material source of revenue in the future. These licenses will include terms providing that management has control of the content and use of the brand. Who's Your Daddy is also working on licensing opportunities for a variety of other products, including, hats, beverages, children's books, skateboards, luggage, sunglasses, fragrances, watches, sports products, and video games.
The Company believes that these products will not only generate revenues through licensing fees, but will also increase the intellectual value of the brand and diversify the Who's Your Daddy product line, which currently consists of over 300 products. Who's Your Daddy has hired a licensing manager to seek new licensees domestically and internationally for all product divisions.
Snocone develops and acquires innovative wireless solutions creating a portfolio of mobile technologies and applications. In the past two years, Snocone has successfully developed wireless mobile applications that can be used for professional sports, entertainment, homeland defense, wireless security and surveillance. Snocone continues to pursue further acquisition opportunities in order to strengthen the company's bottom line.
This material includes forward-looking statements based on management's Current reasonable business expectations. In this document, the words "can," "anticipates," and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities Act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. The material should be read in conjunction with the Company's current annual and quarterly reports filed with the SEC, which contain discussions of currently known factors that could significantly impact the Company's future expectations.
-------------------------------------------------------------------------------- Contact: Snocone Systems Inc. Vivian Kane President (604) 601-2181 info@snoconesystems.com OR Who's Your Daddy, Inc. Dan Fleyshman President (619) 504-2000 wyd360@hotmail.com www.theclothingline.com
-------------------------------------------------------------------------------- Source: Snocone Systems Inc.
-------------------- If all goes well then great, if not, make it work. Posts: 2562 | From: Louisville, KY | Registered: Feb 2005
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