Adidas Group’s in-house venture capital fund has agreed to invest $2 million (CAD) in CRAiLAR Technologies Inc., a Canadian company that makes natural fiber in the form of flax, hemp and other fibers for use in textile, industrial, energy, medical and composite material applications.
In conjunction with the proposed private placement, Hydra Ventures B.V has agreed to subscribe for up to 3,333,333 units of CRAiLAR at a proposed subscription price of CAD$0.60 per unit. Each unit will be 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.
Launched in 2011, Hydra Ventures is the corporate venture arm of adidas AG, and is dedicated to exploiting new market opportunities by creating and developing new consumer brands and trends in the apparel, footwear and sports-related areas. In addition special consideration is given to companies with sustainable or socially responsible attributes.
Proceeds from the proposed private placement, which must be approved by the Toronto Stock Exchange, will be utilized for general corporate and working capital purposes. CRAiLAR said that certain creditors have agreed to extend the term of their current loans to the company if the transaction is closed.