CRAiLAR Technologies, the producer of CRAiLAR Flax fibre, has completed a General Supply Agreement and CA$3.2 million of financing with IKEA, the world's largest home furnishings retailer.

The company has also finalised negotiations to enter into a proposed CAD$2.0 million private placement investment with Hydra Ventures B.V., the corporate venture arm of the adidas Group.

Commercialisation agreement

The IKEA General Supply Agreement provides for exclusivity in certain domestic textiles categories and requires minimum order quantities through 2019. CRAiLAR has already received orders and has begun flax fibre production for IKEA at its European production facility.

“A robust commercialisation agreement together with financing from an iconic global customer is a major step for CRAiLAR as a brand, manufacturer and supplier,” said Ken Barker, CEO. "We are very proud and humbled by this vote of confidence, and are excited to begin delivering CRAiLAR Flax fibre to consumers globally, while working with the largest home furnishings retailer in the world.”

Investment

In conjunction with the proposed private placement, Hydra Ventures has agreed to subscribe for up to 3,333,333 units of the CRAiLAR company, at a proposed subscription price of CAD$0.60 per unit.

Proceeds from the proposed private placement will be utilised for general corporate and working capital purposes. “We are very pleased that adidas Group's Hydra Ventures have invested in CRAiLAR,” said Ken Barker. “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.”

www.crailar.com