Carmanah Technologies Corporation (“Carmanah” or the “Company”) announces that it has filed a civil lawsuit in the Supreme Court of British Columbia against Royal & Sun Alliance Insurance Company of Canada (“RSA”) and Integro (Canada) Ltd. (“Integro”) operating as Integro Insurance Brokers. The lawsuit has been filed in an effort to obtain coverage under one or more of the Company’s insurance policies, underwritten by RSA, for costs associated with defending a US lawsuit filed against the Company in July 2013.
The underlying lawsuit, which the Company has been defending on its own, is a civil action initiated by R.D. Jones, Stop Experts, Inc., and RRFB Global, Inc. in the United States District Court of the Southern District Florida (the “Stop Experts Lawsuit”), which alleges patent infringement with respect to a specific flash pattern used in the Company’s solar powered flashing beacons for the traffic safety market and claims relating to advertising and business practices. The Company continues in its belief that the Stop Experts Lawsuit is without merit.
The decision to file a lawsuit against RSA and Integro was made after negotiations with RSA failed to produce an acceptable settlement for repayment of the costs incurred by the Company. The lawsuit seeks to recover legal expenses and damages. To the end of December 31, 2014, the Company has incurred approximately $1.1 million defending the Stop Experts Lawsuit.
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.
In 2013, through shareholder led initiatives, the company was restructured under the leadership of CEO John Simmons, while the Company’s largest shareholder, Michael W. Sonnenfeldt, became non-executive Chairman. Carmanah’s current board members demonstrate their belief in Carmanah's future by having been the largest investors in each financing since the restructuring and now, as a group, own the majority of Carmanah's issued and outstanding shares.
Carmanah Technologies Corporation:
Stuart Williams, (250) 380-0052(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. Examples of forward-looking information in this news release include, but are not limited to, statements with respect to the Company’s backlog and the ability to deliver these orders, and estimates of revenue for the period. 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 this press release.