Dan Villeneuve, Aquablue president, showed CBC News where the company plans to install its equipment in the former Hershey factory. He hopes the plant will be running by June. (Steve Fischer/CBC)

A bottled-water company that was supposed to take over a former Hershey's chocolate factory in Smiths Falls, Ont., is still hunting for money to buy the building and the equipment for its production line.

Aquablue International announced in June it was taking over the plant and planned to create 200 high-paying jobs by 2011 by converting the factory into a water-bottling facility.

That would have replaced some of the 500 jobs lost in Smiths Falls when Hershey shut the plant in 2008. The company plans to bottle 300 million litres of water per year, largely for export.

However, Aquablue president Dan Villeneuve confirmed that the company hasn't yet completed a lease-to-own agreement with Hershey. Nor has it ordered its equipment.

Aquablue announced in June that it was taking over the factory. Its banner now hangs on the building. (CBC)

"We're actively looking to secure all of our financing, especially on the equipment side," Villeneuve said, adding that the company remains committed to getting the plant operational by next June.

He took CBC News on a tour, pointing out the places where the company plans to install its processing equipment.

The firm already has money in the "range" it needs and is looking to obtain the rest, he added. But he said talk about financing could make it even more difficult to find investors.

He said he expects to have a lease-to-own agreement by the end of the year.

Smiths Falls Mayor Dennis Staples told CBC News he still believes in Aquablue.

"I'm hopeful and continue to be hopeful that production will occur sometime in 2010," he said.

When asked if the city did any research to see how viable the company was, Staples responded: "That's not our role. Our role is to welcome new businesses. Our role is not to check out business plans for any business. We don't do that. We simply encourage people to come to Smiths Falls."

Former employee claims $14,000

Tom Ondrejicka, who left his position as Aquablue's former marketing director six months ago, said he's still owed $14,000 from the company and he doubts it will ever reopen the Smiths Falls plant.

He estimated taking over the plant would cost close to $50 million.

"That money's not there," he said.

On the company's website, Aquablue's CEO is listed as Manuel de Silva, who in the fall was facing a charge of fraud involving another bottled-water company. He agreed to pay $5,000 to another investor and the charge was dropped.