Posted on March 2, 2007

Firm in talks to buy organic baby food maker

Clearly Canadian also announces new financing as it continues acquisition streak in organic foods sector

Clearly Canadian Beverage Corporation said Tuesday it is negotiating to purchase My Organic Baby, an organic food and beverage company, based in Ontario.

The Vancouver, B.C.-based beverage company also said proposed financing with a group of investors including James Dines, BG Capital Group Ltd. and a leading Canadian merchant bank, would include a sale of up to 1.7 million common shares of the company at $3 per share with a warrant, exercisable at $3.25 per share, attached to each common share sold.

The company recently acquired DMR Food Corporation, the largest seller of organic and natural snack foods in eastern Canada, doing business as Sweet Selections.

Clearly Canadian said it is looking to do in the organic and natural foods market what Pepsi/Frito Lay has done in connecting beverages and snack food.

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