Clearly Canadian Brands has struck a deal with company bond-holders over plans to raise almost C$10m (US$9.9m) for expansion.

The food and beverage group said it ended its disputes with investors holding C$9.36m in senior convertible notes. 

Under the agreement, the note-holders waived certain prior defaults by Clearly Canadian and the company agreed to amend the conversion price and certain other terms of the securities held by the note-holders.

In addition, the note-holders waived payment obligations for liquidated damages, which were estimated at C$600,000.

"We are extremely pleased to have finalised our financing agreement," said Bobby Genovese, Clearly Canadian's chairman and CEO.

"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 three years."

With the adjusted conversion price now set at $1.75 which is a 50% plus premium to today's (14 July) trading price of $1.15, the company now has a more effective agreement, which provides "flexibility and opportunity".

"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," Genovese added.

The company said it is currently evaluating the possibility of accumulating up to an additional four million shares of common stock in the open market. With this financing agreement in place, the company said it is successfully positioned to become a "leader in the exploding natural and organic sector".