Hydra Ventures BV, the corporate venture arm of sporting goods giant Adidas Group, is to invest CAD2.0m (US$1.9m) in Crailar Technologies, developer of the Crailar Flax fibre.

The investment comes in the form of a private placement in which Hydra will essentially buy up to 3.3m units of the company at CAD$0.60 each.

Proceeds will be used for general corporate and working capital purposes, Crailar said.

"We believe that our relationship with such an iconic sports company will help deliver a Crailar brand and product message to some of the most loyal consumers on the planet," added Ken Barker, CEO.

Separately, CRAiLAR said it has also reached a CAD3.2m financing deal with Swedish home furnishings retailer IKEA in the form of a fixed rate loan. The funding is intended to expand Crailar's European production facility and provide working capital for IKEA orders, which include exclusivity in certain textile categories.

Companies using Crailar Flax include HanesBrands and Target Corp, while Levi Strauss, Carhartt, PVH Corp, Cone Mills and Lenzing are evaluating its potential.