U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: June 25, 2007
NATURALLY ADVANCED TECHNOLOGIES, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
British Columbia, Canada 0-50367 98-359306
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(State or other jurisdiction (Commission file no.) (IRS employer
of Incorporation) Identification)
1307 Venables Street
Vancouver, British Columbia, Canada, V5L 2G1
____________________________________________
(Address of Principal Executive Offices)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On approximately June 13, 2007, Crailar Fiber Technologies, Inc.
("Crailar"), the wholly-owned subsidiary of Naturally Advanced Technologies,
Inc., a corporation organized under the laws of the Province of British Columbia
(the "Company"), entered into a master agreement for technology development
dated effective as of January 1, 2007 (the "Technology Development Agreement")
with Alberta Research Council, Inc. ("ARC").
The Company has two operating divisions: (i) Crailar; and (ii) HT
Naturals. During prior fiscal years, Crailar has been conducting development
work with the National Research Council on the CRAILAR bast fiber enzymatic
processes to facilitate the commercialization of bast fibers for fabric,
composite and potentially medical use (the "Crailar Series Fiber").
Subsequently, Crailar entered into the Technology Development Agreement with ARC
to formalize the collaboration and licensing duties of each party regarding
development of the technology related to the Crailar Series Fiber and
identification of associated potential opportunities, applications and projects
related to the development of the Crailar Series Fiber and subsequent
manufacture, marketing, distribution and sale of Crailar Series Fiber products
(collectively, the "Project Agreements").
In accordance with the terms and provisions of the Technology
Development Agreement: (i) Crailar shall initially pay to ARC $10,000 on April
1, 2007 (which as of the date of this Report has been paid) and subsequently
$25,000 per calendar quarter on the first day of each calendar quarter
commencing July 1, 2007, which sums shall be used exclusively for the purpose of
Crailar's contributions required pursuant to the Project Agreements; (ii)
Crailar shall provide work-in-kind of a value of $25,0000 per calendar quarter
commencing April 1, 2007 as part of Crailar's contributions to the Project
Agreements, which are contingent upon there being in effect one or more Project
Agreements requiring financial contributions from and services by Crailar; (iii)
Crailar shall pay to ARC the fees and expenses set out in each Project
Agreement; (iv) with respect to all Project Agreements, Crailar shall be
entitled to an option for an exclusive worldwide royalty-bearing license to use
the intellectual property developed pursuant to such Project Agreement; and (v)
Crailar shall pay to ARC a royalty of 3% of the gross sales for the first
$50,000,000 of gross sales and 1.5% of gross sales for all gross sales in excess
of $50,000,000.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
10.01 Mater Agreement for Technology Development between Alberta Research
Council, Inc. and Crailar Fiber Technologies, Inc. dated effective as
of January 1, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NATURALLY ADVANCED TECHNOLOGIES, INC.
Date: June 25, 2007 By: /s/ KEN BARKER
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Ken Barker
Chief Executive Officer