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CD Ltd. has agreed to acquire the retail operations of Records On Wheels Inc. in exchange for 5.5 million shares and warrants exercisable for another 10 million shares. The acquisition is part of a strategic and financial alliance with Toronto-based Records On Wheels, a private wholesaler of music and digital video disc products. Though the companies won't merge, Mississauga-based CD said they will "work closely together to combine their expertise and to maximize their market strength." The acquisition will give CD Plus 11 Maritime and one Ottawa location, bringing its total to 156 locations. Records On Wheels will also fill orders for CD's Internet sites. CD Plus shares closed yesterday at 20 cents each, up 4 cents on the Toronto Stock Exchange.