VICTORIA, BC and PORTLAND, OR, Nov. 7, 2013 /CNW/ - CRAiLAR Technologies
Inc. ("CL" or the "Company") (TSXV: CL) (OTCBB: CRLRF), which produces
and markets CRAiLAR® Flax fiber The Friendliest Fiber On The Planet™, announced today it has finalized the purchase of a European based
fiber processing company with more than 40 years of experience in the
industry. The acquisition, announced in early-September, allows the
Company complete operational control of the processing of its
proprietary CRAiLAR Flax fiber. The facility is fully operational and
will have the capacity to produce in excess of 250,000 pounds of
CRAiLAR Flax fiber per week, with room to expand to one million pounds
per week. The facility is located in one of most prolific flax growing
and producing regions in the world.
This acquisition accelerates the timeline to own and operate a wet
processing facility by six to nine months and mitigates risks and
potential problems associated with commissioning a new plant. Given
this strategic shift for the company, the following should be noted:
This acquisition is strategically significant for the Company, as it
accelerates the timeline to cash flow break even and positive gross
The facility is operated by very experienced personnel with considerable
knowledge of fiber and while in due diligence, produced the highest
quality CRAiLAR Flax fiber to date.
The Company will postpone the completion of a fully integrated facility
in South Carolina until it exceeds the capacity of its European
facility or a strategic partner desires a dedicated facility and
supports the $14 million build-out in South Carolina.
CRAiLAR is acquiring the facility with no capital by retiring
approximately U.S.$1.2 million of the vendor's debt over a three-year
period. Additionally, CRAiLAR entered into a ten-year lease and option
to purchase agreement on the building housing the facility with a
renewal option for an additional ten years.
"With the acquisition of our European facility, we now have operational
control of the CRAiLAR production process and we believe, a more
immediate path to positive gross margin with minimal capital outlay,"
stated Ken Barker, Chief Executive Officer.
About CRAiLAR Technologies Inc.
CRAiLAR® 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., Cintas, 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 www.crailar.com.
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 forward-looking statements.
SOURCE: Crailar Technologies Inc.
For further information:
Ted Sanders, CFO (503) 387-3941 email@example.com