VANCOUVER, BRITISH COLUMBIA, September 26 /CNW/ - Clearly Canadian
(OTCBB:CCBEF) (the "Company") is pleased to announce that it has completed a
$9.36 million financing from institutional investors through the sale of a
senior convertible note with a $2.33 conversion price and a 9% interest rate.
The Company will receive gross proceeds from the financing of approximately $9
million. The investors were also issued 4,017,167 five year warrants. Half of
the warrants are exercisable at $2.33 and half are exercisable at $2.56. Net
proceeds will be used for general working capital.
Additionally, the Company restructured the liabilities due to the sellers
of DMR Food Corporation and My Organic Baby, Inc. (both recently acquired by
Clearly Canadian), by the payment of CDN $4 million in cash with the balance
due being converted into a subordinated convertible note with a $2.33
conversion price and a 9% interest rate.
"With the completion of these transactions, we will have over $10 million
of cash to expand the execution of our growth plan and to fulfill our
commitment to deliver consumers healthier choices," stated Brent Lokash, CEO
of Clearly Canadian. "The past two years have seen Clearly Canadian build a
diversified foundation of recognizable product lines and world class sales and
marketing talent, resulting in the resurgence of our brand name. For the first
time in years, we are on track to deliver solid year over year revenue growth.
Now, with the support of experienced financial institutions, we have the tools
necessary to once again achieve the success this Company enjoyed when it
helped launch the alternative beverage industry."
Lane Capital Markets (LCM), a partnership Investment Bank, acted as
Clearly Canadian's Exclusive Placement Agent and Financial Advisor. LCM
specializes in financings and advisory work for emerging and high growth
companies across all industries. Additional information about LCM may be
obtained at www.lanecapitalmarkets.com.
For more information on these transactions see the filings with the
Securities and Exchange Commission.
About Clearly Canadian
Based in Vancouver, B.C., Clearly Canadian Brands markets premium
alternative beverages, including Clearly Canadian(R) sparkling flavored waters
and Clearly Canadian dailyEnergy, dailyVitamin, and dailyHydration Natural
Enhanced Waters which are distributed in the United States, Canada, and
various other countries. Clearly Canadian's recent acquisition of DMR Food
Corporation and My Organic Baby Inc. marks the Company's debut into organic
and natural products with a full line of organic baby and toddler foods under
the brand names My Organic Baby and My Organic Toddler and a wide range of
dried fruit and nut snacks offerings from SunRidge Farms, Naturalife, Sweet
Selections, Simply by Nature and Glengrove Organics brands. Additional
information about Clearly Canadian may be obtained at www.clearly.ca.
Forward Looking Statements
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties. Words
such as "expects", "intends", "plans", "may", "could", "should",
"anticipates", "likely", "believes", "estimates", "potential", "predicts",
"continue" and words of similar import also identify forward-looking
statements. Forward-looking statements are based on current facts and analysis
and other information that are based on forecasts of future results, estimates
of amounts not yet determined and assumptions of management, including but not
limited to, the belief in the opportunities which can exist for our products.
These assumptions are subject to many risks, and actual results may differ
materially from those currently anticipated. These risks include, by way of
example and not in limitation, general economic conditions, changing beverage
consumption trends of consumers, the Company's ability to generate sufficient
cash flows to support general operating activities and capital expansion
plans, competition, pricing and availability of raw materials, the Company's
ability to maintain the current and future retail listings for its beverage
products and to maintain favorable supply, production and distribution
arrangements, laws and regulations and changes thereto that may affect the way
the Company's products are manufactured, distributed and sold and other
factors beyond the reasonable control of the Company. Additional information
on factors that may affect the business and financial results of the Company
can be found in filings of the Company with the U.S. Securities and Exchange
Commission and with the British Columbia and Ontario Securities Commissions.
For further information:
For further information: Clearly Canadian, Vancouver Shareholder
Relations Steve Cook, 800-983-0993 firstname.lastname@example.org or Marketing Carolyn
Corcoran, 604-742-5318 email@example.com