Wednesday September 26, VANCOUVER, British Columbia – Clearly Canadian (OTCBB:CCBEF – News; the "Company") is pleased to announce that it has completed a $9.36 million financing from institutional investors through the sale of a senior convertible note with a $2.33 conversion price and a 9% interest rate. The Company will receive gross proceeds from the financing of approximately $9 million. The investors were also issued 4,017,167 five year warrants. Half of the warrants are exercisable at $2.33 and half are exercisable at $2.56. Net proceeds will be used for general working capital.
Additionally, the Company restructured the liabilities due to the sellers of DMR Food Corporation and My Organic Baby, Inc. (both recently acquired by Clearly Canadian), by the payment of CDN $4 million in cash with the balance due being converted into a subordinated convertible note with a $2.33 conversion price and a 9% interest rate.
"With the completion of these transactions, we will have over $10 million of cash to expand the execution of our growth plan and to fulfill our commitment to deliver consumers healthier choices," stated Brent Lokash, CEO of Clearly Canadian. "The past two years have seen Clearly Canadian build a diversified foundation of recognizable product lines and world class sales and marketing talent, resulting in the resurgence of our brand name. For the first time in years, we are on track to deliver solid year over year revenue growth. Now, with the support of experienced financial institutions, we have the tools necessary to once again achieve the success this Company enjoyed when it helped launch the alternative beverage industry."
About Clearly Canadian: Based in Vancouver, B.C., Clearly Canadian Brands markets premium alternative beverages, including Clearly Canadian® sparkling flavored waters and Clearly Canadian dailyEnergy, dailyVitamin, and dailyHydration Natural Enhanced Waters which are distributed in the United States, Canada, and various other countries. Clearly Canadian’s recent acquisition of DMR Food Corporation and My Organic Baby Inc. marks the Company’s debut into organic and natural products with a full line of organic baby and toddler foods under the brand names My Organic Baby and My Organic Toddler and a wide range of dried fruit and nut snacks offerings from SunRidge Farms, Naturalife, Sweet Selections, Simply by Nature and Glengrove Organics brands. Additional information about Clearly Canadian may be obtained at www.clearly.ca.