- This acquisition is strategically significant for the Company, as it accelerates the timeline to cash flow break even and positive gross margin.
- The facility is operated by very experienced personnel with considerable knowledge of fiber and while in due diligence, produced the highest quality CRAiLAR Flax fiber to date.
- The Company will postpone the completion of a fully integrated facility in South Carolina until it exceeds the capacity of its European facility or a strategic partner desires a dedicated facility and supports the $14 million build-out in South Carolina.
- CRAiLAR is acquiring the facility with no capital by retiring approximately U.S. $1.2 million of the vendor's debt over a three-year period. Additionally, CRAiLAR entered into a ten-year lease and option to purchase agreement on the building housing the facility with a renewal option for an additional ten years.
CRAiLAR Finalizes Purchase Of European Processing Facility
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts