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Monday, 07/14/2008 8:50:59 AM

Monday, July 14, 2008 8:50:59 AM

Post# of 161
Clearly Canadian Brands Finalizes Terms for $9.36 Million Financing
Monday July 14, 8:45 am ET


TORONTO--(BUSINESS WIRE)--CLEARLY CANADIAN BRANDS (OTCBB: CCBEF - News) (the “Company”) today announced that on July 14, 2008, the company entered into an agreement with holders of our outstanding $9.36 million senior convertible notes, in resolution of certain disputes between the parties. We are very pleased to have reached a settlement with these note holders and look forward to moving beyond this dispute. Under this Consent, Waiver and Amendment, among other things, the note holders waived certain prior defaults by us and we agreed to amend the conversion price and certain other terms of the securities held by the note holders. In addition, the note holders waived our payment obligations for liquidated damages (estimated at approximately $600,000 through July 14, 2008) with respect to our pending registration statement on file with the SEC, and we are permitted to withdraw this registration statement.
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We will file a report on Form 6-K with the U.S. Securities and Exchange Commission shortly, describing the material terms of this agreement and attaching a full copy of the Consent, Waiver and Amendment. We encourage interested readers to review the Form 6-K in its entirety.

Stated Bobby Genovese, Chairman of the Board and CEO of Clearly Canadian Brands “We are extremely pleased to have finalized our financing agreement. We have worked out an arrangement that is agreeable to our note holders; it is an immediate savings of approximately $600,000 in waived fees for Clearly Canadian Brands and potentially saves us millions of dollars in interest payments over the next 3 years. With the adjusted conversion price now set at $1.75 which is a 50% plus premium to today’s trading price of $1.15 we now have a more effective agreement, which provides flexibility and opportunity for us. I strongly feel that this agreement clarifies and therefore strengthens our financial position, which in turn frees us up to execute our business model as previously laid out. We will continue to pursue strategic acquisitions, expand existing product lines and open up strategic long term selling relationships with some of the largest retailing groups in the world.”

Mr. Genovese added; “I currently am evaluating the possibility of accumulating up to an additional 4 million shares of common stock in the open market. Additionally I will not sell any of my existing position over the next 3 years. With this financing agreement now finally in place, it is my strong belief we have successfully positioned Clearly Canadian Brands to become a leader in the exploding natural and organic sector. We have had stimulating recent developments that continue to open up tremendous selling opportunities for all of our product lines, and we will likely close several highly synergistic acquisitions in the near future. These developments combined will provide tremendous momentum for the new Clearly Canadian Brands for the remainder of 2008 and heading into 2009 and beyond.”


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