VANCOUVER -- Clearly Canadian Beverage Corp. has sold a bottling plant in Washington state and the Cascade Clear water brand for a total of about $6.3 million US.

The deal between Clearly Canadian's American subsidiary, CC Beverage (U.S.) Corp., and Advanced H2O Inc. of Bellevue, Wash., involves $2.1 million in cash and the assumption of $2.2 million in debt for the bottling facility in Burlington, Wash.

In addition, Advanced H2O is to pay $2 million "over time" for Cascade Clear, based on a percentage of sales, with a minimum payment of $100,000 US per year.

Under the agreement announced Wednesday, Advanced H2O also undertakes to provide CC Beverage with bottling services at cost for as many as 1.75 million cases of drinks per year, for up to 10 years.

Clearly Canadian said it will use the sale proceeds "for general working capital purposes, to reduce debt and to provide additional funding for the marketing and distribution of its beverages, including the continued roll-out of Reebok Fitness Water in the United States and Canada."

Clearly Canadian, which previously disposed of its home and office water delivery business, "made the strategic decision to divest of its subsidiary's production facility at this time to return to its core competencies - the marketing of premium alternative beverages," stated president Douglas Mason.

Clearly Canadian (TSE:CLV), whose products include Clearly Canadian sparkling flavoured water, Tre Limone and the Reebok licensed beverage, lost $1 million on sales of $8.5 million in its most recently reported quarter ended Sept. 30.