CRAiLAR Receives CAD$2.0 Million Private Placement from Hydra Ventures B.V.
PORTLAND, OR, Dec. 19, 2013 /CNW/ - CRAiLAR Technologies Inc. (TSXV: CL)
(OTCQB: CRLRF), which produces and markets CRAiLAR® Flax fiber The
Friendliest Fiber On The Planet™, today announced that it has finalized
negotiations to enter into a proposed CAD$2.0 million private placement
investment (the "Private Placement") with Hydra Ventures B.V., the corporate
venture arm of the adidas Group (FRA: ADS).
In conjunction with the proposed Private Placement, Hydra Ventures has agreed
to subscribe for up to 3,333,333 units of the Company (each a "Unit"), at a
proposed subscription price of CAD$0.60 per Unit, with each Unit being
comprised of one common share and one common share purchase warrant of the
Company with each warrant being exercisable for a period of five years from
closing at an exercise price of CAD$0.70 per warrant common share.
Proceeds from the proposed Private Placement will be utilized for general
corporate and working capital purposes.
"We are very pleased that adidas Group's Hydra Ventures have invested in
CRAiLAR," said Ken Barker, CEO. "As a global leader in the advancement of
sustainability and sports performance, we believe that our relationship with
such an iconic sports company will help deliver a CRAiLAR brand and product
message to some of the most loyal consumers on the planet."
In conjunction with the completion of the proposed Private Placement certain
Company creditors have agreed to extend the term of their current loans to the
Company (the "Extension") and, in consideration thereof, one such Company
creditor and director will receive an aggregate of 181,666 bonus common shares
of the Company, at a deemed issuance price of CAD$0.60 per common share, for
such Extension (the "Bonus Share Issuance").
Each of the proposed Private Placement and Bonus Share Issuance by the Company
is subject to definitive documentation and prior TSX Venture Exchange approval
to the completion thereof.
About HYDRA VENTURES
Launched in 2011, Hydra Ventures is the corporate venture arm of adidas AG,
and is dedicated to exploiting new market opportunities by creating and
developing new consumer brands and trends in the apparel, footwear and
sports-related areas. In addition special consideration is given to companies
with sustainable or socially responsible attributes. For more information, see
About CRAiLAR Technologies Inc.
CRAiLAR(R) Technologies Inc. offers cost-effective and environmentally
sustainable natural fiber in the form of flax, hemp and other bast 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 the newest natural fiber
introduction to the market in decades. The Company supplies its CRAiLAR Flax
to HanesBrands, Georgia-Pacific, Tuscarora Yarns, Target Corp. and Kowa
Company for commercial use, and to Levi Strauss & Co., Carhartt, Ashland, PVH
Corp., Cotswold Industries, Cone Mills 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
Safe Harbor Statement
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this news release, other than
statements of historical facts, are forward-looking statements.
Forward-looking statements or information are subject to a variety of risks
and uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements or
information and including, without limitation, risks and uncertainties
relating to: completion of a definitive agreement and acquisition of the
European Wet Processing facility, any market interruptions that may delay the
trading of the Company's shares, technological and operational challenges,
needs for additional capital, changes in consumer preferences, market
acceptance and technological changes, dependence on manufacturing and material
supplies providers, international operations, competition, regulatory
restrictions and the loss of key employees. In addition, the Company's
business and operations are subject to the risks set forth in the Company's
most recent Form 10-K, Form 10-Q and other SEC filings which are available
through EDGAR at www.sec.gov. These are among the primary risks we foresee at
the present time. The Company assumes no obligation to update the
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release
SOURCE Crailar Technologies Inc.
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CO: Crailar Technologies Inc.
NI: TEX NASDAQ PVT NEWSTK
-0- Dec/19/2013 14:41 GMT
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