Carmanah Technologies Corporation (the “Company” or “CMH”) has today entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Genuity Corp. and GMP Securities LP (collectively, the “Underwriters”) pursuant to which the Underwriters have agreed to buy and sell to the public 5,000,000 common shares (“Common Shares”) of the Company at a price of $5.00 (CAD) per Common Share, for gross proceeds to the Company of $25,000,000 (CAD) (the “Offering”). The Underwriters will also have the option, exercisable in whole or in part at any time up to 15 days after the closing of the Offering, to purchase up to an additional 750,000 Common Shares of the Company. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be $28,750,000 (CAD). Closing of the Offering is expected to occur on or about April 28, 2015 and is subject to regulatory approval including that of the Toronto Stock Exchange. Completion of the Offering will also be conditional upon the receipt by the Company of written consents to the Offering (in such form as may be acceptable to the Toronto Stock Exchange) of the holders of not less than 50% of the issued and outstanding Common Shares.
The Common Shares to be issued under the Offering will be offered by way of a short form prospectus in all provinces in Canada, except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and certain other jurisdictions.
The net proceeds of the Offering will be used to fund the Company’s continued growth strategy, which is expected to include acquisitions, debt repayment and for general corporate purposes.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Carmanah Technologies Corporation
Since its founding in 1996, Carmanah has become one of the most trusted names in solar technology, delivering reliable and cost-effective solar powered products and systems for industrial applications worldwide. To date, Carmanah's solutions for marine navigation, airfield ground lighting, aviation obstruction, roadway illumination, parking lot lighting, as well as on and off-grid power generation, have been successfully deployed in over 400,000 installations in 110 countries with proven performance in conditions ranging from desert heat to arctic cold.
Carmanah Technologies Corporation;
Evan Brown, (250) 380-0052
Chief Financial Officer/Corporate Secretary
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah. Accordingly, readers should not place undue reliance on forward-looking statements. Carmanah does not assume any obligation to update the forward-looking information contained in thi