The soft drinks producer Clearly Canadian Beverage Corporation said yesterday that it has completed the first advance of its bridge financing loan with Quest Capital Corporation.

The company has signed a loan agreement and received a first advance of C$750,000 of an aggregate financing of up to C$2.1m.

The advance by Quest Capital of the balance is subject to Clearly Canadian providing additional security with respect to certain of its properties located in Washington State and Ontario.

In connection with the loan, Clearly Canadian has issued 660,000 common shares to Quest Capital, and has issued warrants to purchase up to 250,000 common shares at a price of C$0.34 per share for two years to Dundee Securities Corporation.

Concurrently, certain officers and directors of the Clearly Canadian have funded an additional C$500,000 loan on the same terms and conditions as the Quest Capital loan, but subordinated in priority and payment to the Quest Capital loan.

The net proceeds of the bridge loans will be used for general working capital.

It is expected that the loans will be repaid from proceeds of the company's previously announced proposed unit prospectus offering in which Clearly Canadian intends to raise up to C$9m.