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 completed a General Supply Agreement and
CA$3.2 million of financing with Ikea. IKEA has extended the Company a
€2.2 million (CA$3.2 million), 30 month, 1.9% fixed rate loan ("Loan")
designated for the installation of equipment to support and expand
CRAiLAR's European production facility and working capital for IKEA
orders. The Loan is to be secured by assets purchased with the proceeds
as well as a portion of the secured assets used to secure the July 26,
2013 10% secured convertible debentures.
The IKEA General Supply Agreement provides for exclusivity in certain
domestic textiles categories and requires minimum order quantities
through 2019. CRAiLAR has already received orders and has begun flax
fiber production for IKEA at its European production facility.
" A robust commercialization agreement together with financing from an
iconic global customer is a major step for CRAiLAR as a brand,
manufacturer and supplier" said Ken Barker, CEO. "We are very proud and
humbled by this vote of confidence, and are excited to begin delivering
CRAiLAR Flax fiber to consumers globally, while working with the
largest home furnishings retailer in the world."
The Company has agreed to amend, in exchange for the release of secured
assets, the conversion terms of its July 26, 2013 10.0% secured,
subordinated convertible debentures (the "Debentures"); in the
principal amount of $3,535,000; such that, at the holder's option, the
Debentures may now be converted into common shares in the capital of
the Company at $1.25 instead of $2.00 per Share.
Each of the proposed Loan and amended Debentures is subject to
definitive documentation and TSX Venture Exchange approval prior to the
IKEA, the world's largest home furnishings retailer, was founded in 1943
in Sweden. Since that time, IKEA has offered home furnishings of good
design, quality and function at low prices so the majority of people
can afford them. There are currently more than 340 IKEA stores in 42
countries, including 38 in the U.S. IKEA incorporates sustainability
into day-to-day business and supports initiatives that benefit children
and the environment. For more information, see IKEA-USA.com, facebook.com/IKEAUSA, @DesignByIKEA, and http://pinterest.com/IKEAUSA/.
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 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:
Jay Nalbach, CMO
Investor Relations Contact:
Ted Sanders, CFO