Clearly Canadian has completed short term financing arrangements with BG Capital Group Ltd.

"BG Capital has advanced C$1m to Clearly Canadian under a secured loan agreement and demand note," the company said in a statement on Friday (18 February). The BG Capital Loan bears interest at a rate of 10% per annum and is payable within 90 days, if demand for repayment is made by BG Capital.

If the company chooses to seek additional financing from any third parties, then it will be required to pay a penalty or break fee to BG Capital. Such penalty would require Clearly Canadian to pay all accrued and unpaid interest at the time of such prepayment of the BG Capital Loan at a rate of 50% per annum.

"Going forward, it will be necessary for Clearly Canadian to secure additional financing in order to support the company's operations and relations with existing suppliers and vendors and to allow for more aggressive marketing and sales activities for its beverage products," the company added.