PORTLAND, OR, Dec. 24, 2013 /CNW/ - CRAiLAR Technologies Inc. (TSXV: CL)
(OTCQB: CRLRF), which produces and markets CRAiLAR® Flax fiber The Friendliest Fiber On The Planet™, today announced the closing of its previously announced CAD$3.2
million loan financing with IKEA ("Loan). The term of the Loan is 30
months, bears interest at 1.9% fixed rate and is 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 certain assets to be purchased with the proceeds as
well as a portion of the secured assets used to originally secure the
Company's July 26, 2013 10% secured, subordinated, convertible
debentures (the "Debentures").
In conjunction with the completion of the Loan, the Company and its
present Debenture holders have agreed to amend, in exchange for the
release of certain secured assets, the conversion terms of the
Debentures; in the principal amount of $3,535,000; such that, at the
Debenture holders' 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.
In conjunction with the completion of the Loan, the Company has now
closed upon its previously announced CAD$2.0 million private placement
investment (the "Private Placement") with Hydra Ventures B.V. ("Hydra
Ventures"), the corporate venture arm of the adidas Group (FRA: ADS).
Hydra Ventures has been issued an aggregate of 3,333,333 units of the
Company (each a "Unit"), at a subscription price of CAD$0.60 per Unit,
with each Unit being comprised of one common share and one common share
purchase warrant (each a "Warrant") of the Company, and with each
Warrant being exercisable for a period of five years from the date of
closing at an exercise price of CAD$0.70 per Warrant common share. The
proceeds from the Private Placement will be utilized for general
corporate and working capital purposes.
In conjunction with the completion of the Private Placement certain
Company creditors have agreed to extend the term of their current loans
to the Company and, in consideration thereof, one such Company creditor
and director will receive an aggregate of 187,878 bonus common shares
of the Company, at a deemed issuance price of CAD$0.60 per common
share, for such extension.
Each of the proposed reduction in Debenture conversion price and bonus
share issuance is still subject to prior TSX Venture Exchange approval
prior to the completion thereof.
About IKEA
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 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
release
SOURCE Crailar Technologies Inc.
