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CANADA: Clearly Canadian secures loan

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Clearly Canadian has made arrangements for a secured loan in the aggregate amount of up to C$1.5m.

The company has signed a term sheet with Global (GMPC) Holdings Inc. of Toronto, Ontario for a C$1.5m loan, to be advanced in two tranches, for a term of twelve months. The advance of the first tranche of C$1m will be subject to the execution by the company of definitive loan and security agreements, and the advance of the second tranche of C$500,000 will be subject to the company meeting certain property valuation requirements.

The loan will bear interest at a rate of 12% per annum compounded and payable monthly. The company has agreed to issue to Global 600,000 common shares as a bonus in connection with the first tranche of the loan and an additional 220,000 common shares for the second tranche of the loan.

The net proceeds of the loan will be used to repay in full all amounts remaining outstanding under the company's previous bridge loan from Quest Capital Corp. (approximately C$665,000) and for general working capital purposes. In connection with, and upon completion of the first tranche of the loan, Y&R Investment Capital Inc. will receive a cash fee of C$25,000 and will also receive 175,000 common shares of the company for arranging the loan with Global.

At this time, the company also continues to pursue additional private financing to support the its operations and relations with existing suppliers and vendors and to allow for more aggressive marketing and sales activities for its beverage products.

The funding of the loan by Global is also subject to its completion of satisfactory due diligence. Additionally, the loan and the issuance of the bonus shares, and related fees are subject to regulatory approval.


Sectors: Soft drinks, Water

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