In conjunction with the proposed private placement, Hydra Ventures B.V has agreed to subscribe for up to 3,333,333 units of CRAiLAR at a proposed subscription price of CAD$0.60 per unit. Each unit will be 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, which must be approved by the Toronto Stock Exchange, will be utilized for general corporate and working capital purposes. CRAiLAR said that certain creditors have agreed to extend the term of their current loans to the company if the transaction is closed.
"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."
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
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. Its CRAiLAR Flax, which is produced with a fraction of water and chemical inputs compared with other natural fibers, is used by HanesBrands, Georgia-Pacific, Tuscarora Yarns, Target Corp. and Kowa Company for commercial use, and is being evaluated by 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.
By press release