PORTLAND, OR, Dec. 19, 2013 /PRNewswire/ - 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.