CRAiLAR Technologies Inc. announces closing of entire $5 million secured convertible debentures financing

   CRAiLAR Technologies Inc. announces closing of entire $5 million secured
                       convertible debentures financing

PR Newswire

VICTORIA and PORTLAND, Feb. 26, 2013

VICTORIA and PORTLAND, Feb. 26, 2013 /PRNewswire/ - CRAiLAR Technologies  Inc. 
(TSXV: CL) (OTCBB: CRLRF) ("CL" or the "Company") is pleased to announce  that 
it has closed its previously announced non-brokered private placement offering
(the "Offering") of  10.0% secured, subordinated  convertible debentures  (the 
"Debentures") of the Company for aggregate gross proceeds of $5.0 million.

The within Offering has  been completed on essentially  the same terms as  the 
Company's short-form  public  offering of  convertible  debentures  previously 
announced  by  the  Company  on  August  23,  2012  (the  "Previous  Debenture 
Offering") which was combined with an equity private placement of units at the
same time. Under the Previous  Debenture Offering and related equity  private 
placement, the  Company sought  to raise  an aggregate  of $18.0  million  and 
closed on approximately  $12.5 million  of convertible  debentures and  equity 
units in  September of  last  year. The  current Offering's  aggregate  gross 
proceeds of $5.0 million has now  substantially completed the funding goal  of 
the Company's  Previous  Debenture  Offering and  equity  private  placement. 
Difference Capital, Global Securities Corporation, Cormark Securities Inc. and
Macquarie Private  Wealth  Inc.  acted  as  finders  in  connection  with  the 
Offering.

"We are very  pleased to  have fully completed  this funding  goal," said  Ken 
Barker, CEO of  CRAiLAR. "The completion  of this financing  is an  important 
step in our company's growth strategy as we now move forward on a more  senior 
listing while we simultaneously prepare to deliver finished fiber at increased
capacities from our present manufacturing facility.  CRAiLAR in now in a  more 
ideal position  for introduction  on a  more visible  and globally  accessible 
platform."

The within Debentures will mature on September 30, 2017 (the "Maturity  Date") 
and will accrue interest at a rate of 10.0% per annum payable semi-annually in
arrears on March 31^st and September  30^th in each year commencing  September 
30^th, 2013. At  the holder's option,  the Debentures may  be converted  into 
common shares in the capital of the Company (each a "Share") at any time up to
the earlier of the  Maturity Date and the  business day immediately  preceding 
the date  specified by  the Company  for redemption  of the  Debentures.  The 
conversion price,  subject to  adjustment in  certain circumstances,  will  be 
$2.90 per Share, being a conversion  rate of approximately 344.828 Shares  for 
each $1,000 principal amount of Debentures. The Debentures will not be listed
for trading on the TSX Venture  Exchange (the "Exchange") or any other  public 
market.

The Company  intends to  use the  net proceeds  of the  Offering to  fund  the 
Company's capital program and for general corporate purposes.

The Debentures  have not  been and  will not  be registered  under the  United 
States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may
not be offered or sold in the United States absent registration or  applicable 
exemption from the  registration requirements. This  press release shall  not 
constitute an offer to sell or the  solicitation of an offer to buy nor  shall 
there be any sale of the Debentures  in any jurisdiction in which such  offer, 
solicitation or sale would be unlawful. Any public offering of the Debentures
to be  made in  the  United States  must  be made  by  means of  a  prospectus 
containing detailed information about the  Company and management, as well  as 
financial statements.

The Debentures issued by  the Company are  "restricted securities" as  defined 
under Rule 144(a)(3) of  the U.S. Securities Act  and contain the  appropriate 
restrictive legends  as  required  under the  U.S.  Securities  Act,  National 
Instrument 45-102 and as required by the Exchange.

Neither the Exchange  nor its Regulation  Services Provider (as  that term  is 
defined in  the  policies of  the  Exchange) accepts  responsibility  for  the 
adequacy or accuracy of this release.

About CRAiLAR Technologies Inc.

CRAiLAR®  Technologies   Inc.,   previously  known   as   Naturally   Advanced 
Technologies  Inc.,  offers  cost-effective  and  environmentally  sustainable 
natural fiber in  the form  of flax,  hemp and other  best fibers  for use  in 
textile, industrial,  energy, medical  and composite  material  applications. 
Produced using a  fraction of water  and chemical inputs  compared with  other 
natural fibers,  CRAiLAR Flax  is used  primarily as  a compliment  to  cotton 
today, and aims to  supplement the impending natural  fiber gap caused by  the 
increased use of cotton and other natural fibers in emerging global  markets. 
The  Company  supplies  its  CRAiLAR  Flax  to  HanesBrands,  Georgia-Pacific, 
Brilliant Global Knitwear, Tuscarora Yarns, and Target for commercial use, and
to Levi Strauss & Co., Cintas, Carhartt, Ashland, Target, PVH Corp and Lenzing
for evaluation and development. The Company was founded in 1998 as a provider
of  environmentally  friendly,  socially   responsible  clothing.  For   more 
information, visit www.crailar.com.

ADVISORY: This press release contains forward looking statements which may
include statements concerning completion of any proposed acquisitions, capital
programs, debt, funds flow from operations, closing date of the Offering and
the anticipated use of the net proceeds of the Offering. Although CL believes
that the expectations reflected in these forward looking statements are
reasonable, undue reliance should not be placed on them because CL can give no
assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Any proposed acquisition may not be
completed if required approvals or some other condition to closing is not
satisfied. The closing of the Offering could be delayed if CL is not able to
obtain the necessary regulatory and stock exchange approvals on the timelines
it has planned. The Offering will not be completed at all if these approvals
are not obtained or some other condition to the closing is not satisfied.
Accordingly, there is a risk that any proposed acquisition or offering will
not be completed within the anticipated time or at all. The intended use of
the net proceeds of the Offering by CL might change if the board of directors
of CL determines that it would be in the best interests of CL to deploy the
proceeds for some other purpose.

The forward looking statements contained in this press release are made as  of 
the date hereof and CL undertakes no obligations to update publicly or  revise 
any forward looking  statements or  information, whether  as a  result of  new 
information, future  events or  otherwise, unless  so required  by  applicable 
securities laws.

SOURCE Crailar Technologies Inc.

Contact:

Media Contact:
Ryan Leverenz
CRAiLAR Technologies Inc.
(415) 999-1418
ryan.leverenz@naturallyadvanced.com

Investor Contact:
Mark McPartland
MZ Group
(646) 593-7140
markmcp@mzgroup.us

Corporate Officer:
Guy Prevost
Chief Financial Officer CRAiLAR Technologies Inc.
(866) 436-7869
ir@crailar.com
 
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