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 www.hydra-ventures.com
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.
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
SOURCE: Crailar Technologies Inc.
For further information:
Jay Nalbach, CMO
Investor Relations Contact:
Ted Sanders, CFO