CLEARLY CANADIAN BEVERAGE CORP. ANNOUNCES PAYMENT OF ROYALTY TERMINATION ALLOWANCE TO CAMFREY RESOURCES LTD.
VANCOUVER, British Columbia, April 6 /PRNewswire/ -- By news release dated Jan. 4, 1993, Clearly Canadian Beverage Corp. (NASDAQ: CLCD.F; Vancouver: CLV) announced that it had exercised its right to terminate its royalty and distribution agreement dated Oct. 14, 1988, (the "agreement") with Camfrey Resources Ltd. The company's termination of the agreement was effective Dec. 31, 1992. In connection with the termination of the agreement, the company is required to pay a "royalty termination allowance" equal to five times the average annual royalty paid during the last two years of the current term of the agreement. Based on this royalty buy-out formula, the company has now paid $22,900,478 (CDN) to Camfrey. As a result of the termination, the company is no longer required to pay any royalties to Camfrey under the agreement. Previously, the company was required to pay a royalty of $0.25 (Cdn.) per case on sales of "Clearly Canadian(R)" products in the United States. The company's profitability has been enhanced by $0.25 (Cdn.) per case as a result of terminating the Camfrey royalty. The company has funded the payment of the royalty termination allowance through the liquidation of short-term investments which were held for this purpose. Clearly Canadian Beverage Corp. produces and markets Clearly Canadian(R), a line of natural mineral waters, and flavored sparkling water beverages. Through distribution agreements, Clearly Canadian is sold throughout the United States, Canada, Japan, Great Britain and Ireland. -0- 4/6/93 /CONTACT: Douglas L. Mason, director of Clearly Canadian, 604-683-0312/ (CLCD.F)
CO: Clearly Canadian Beverage Corp.; Camfrey Resources Ltd. ST: British Columbia IN: FOD SU:
BP -- LA016 -- 3484 04/06/93 13:46 EDT
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|Date:||Apr 6, 1993|
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