Naturally Advanced announces Private Placement of Units

15 May '10

3 min read

Naturally Advanced Technologies Inc. has arranged, subject to regulatory approval, a non-brokered private placement consisting of the issuance of up to 1,400,000 units (each a "Unit") of the company, at a subscription price of $1.00 per Unit, to qualified investors, raising up to $1,400,000 by the company (collectively, the "Private Placement").

Each Unit of the Private Placement is comprised of one common share and one-half of one share purchase warrant (each a "Warrant") of the company, with each whole Warrant entitling the subscriber thereof to acquire an additional common share (each a "Warrant Share") of the company for a period of three years from the date of issuance of the Warrants at an exercise price of $1.25 per Warrant Share.

Ken Barker, CEO of Naturally Advanced Technologies stated: "As announced on April 27, 2010, our successful spinning trials have verified the commercial quality and volume capabilities for CRAiLAR Organic Fibers and solidified the commercialization potential of our CRAiLAR(R) technology. As a result, we are in the final phase of our joint development agreement with Hanesbrands, Inc. and working together to develop a commercially viable supply chain and economic, marketing and branding strategies. Based on this progress, we expect this private placement to get us to the point where we start recording our initial revenue from producing commercial levels of CRAiLAR."

Finders' fees may be paid by the company in conjunction with the completion of the Private Placement in accordance with TSX Venture Exchange policies.

Proceeds of the Private Placement will be used to advance the development of the company's business and for general corporate and working capital purposes.

Naturally Advanced Technologies Inc. is committed to unlocking the potential of renewable and environmentally sustainable biomass resources from hemp and other bast fibers. The company, through its wholly owned subsidiary, CRAiLAR Fiber Technologies Inc., is developing proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products, in collaboration with Canada's National Research Council and the Alberta Research Council. CRAiLAR technology offers cost-effective and environmentally sustainable processing and production of natural, bast fibers such as hemp and flax, resulting in increased performance characteristics for use in textile, industrial, energy, medical and composite material applications. The company was founded in 1998 as a provider of environmentally friendly, socially responsible clothing and adheres to a "triple bottom line" philosophy, respecting the human rights of employees, the environmental impact of the company's operations and fiscal responsibility to its shareholders.

Naturally Advanced Technologies Inc

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