Polar Securities Inc.

Moore Capital Management, LLC

January 10, 2008 20:36 ET

Polar Securities Inc. and Moore Capital Management, LLC Announce Agreement

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2008) - Polar Securities Inc. ("Polar") announced today that it has entered into an agreement (the "Agreement") with Moore Capital Management, LLC ("Moore") pursuant to which Polar will advise with respect to the units ("Units") in the capital of Cinram International Income Fund ("Cinram"), held directly or through derivative contracts by Moore. Polar currently manages funds which together hold in the aggregate 1,723,300 Units. Additionally, Robert Poile, an employee of Polar, owns an aggregate of 1,100,000 Units.

As a result of the Agreement, Polar will exercise control or direction over securities which together with Units held by Mr. Poile, aggregate to 23.6% of the issued and outstanding units, comprised of:

(i) 5,560,456 Units; and

(ii) through derivative contracts, the economic interest in an additional 7,882,100 Units.

Pursuant to the Agreement, Polar will be compensated on the basis of increases in the price of securities held by Moore. Further, the parties have agreed on matters related to the disposition of their respective positions.

Polar has advised Cinram that it wishes to appoint two directors to the Cinram Board of Directors. Polar may, subject to market conditions, make further acquisitions or dispositions of securities in the capital of Cinram in the future.

Contact Information

  • Polar Securities Inc.
    Tom Sabourin
    (416) 367-4364