VICTORIA, BRITISH COLUMBIA--(Marketwired - Oct. 11, 2016) - Carmanah Technologies Corporation (TSX:CMH) ("the Company" or "Carmanah") today announced its intention to divest its Power Division businesses.
The Company's Power Division is comprised of two separate businesses:
- Off-Grid Power - The Company's off-grid power business, which operates under the trade name Go Power! provides solar power solutions for the recreational vehicle and industrial work truck markets through OEM and aftermarket channels. It is headquartered in Victoria, Canada.
- On-Grid Power - The Company's on-grid power business designs and builds ground mount and rooftop solar power plants for developers under the Carmanah Solar EPC Services trade name. It is headquartered in Toronto, Canada.
The Company has retained Canaccord Genuity Corp. to advise on the divestiture of Go Power! Separately, Alexander Capital Group Inc. has been retained to advise on the divestiture of Carmanah Solar EPC.
"These divestitures will enable us to focus on our vision to become the global leader in signals and solar LED illumination for infrastructure," said John Simmons, CEO. "The proceeds of the divestitures will allow us to accelerate organic growth initiatives, make more substantive investments in innovation and support our continuing effort to acquire leading contenders in the signals space."
Carmanah's Power Division represented approximately 35% of Carmanah's revenue in the nine months ended September 30, 2016. In the third quarter, the Company will be accounting for the division as a discontinued operation. As such Carmanah's preliminary third quarter results, which are to be released by separate news release, will also exclude this segment.
At this point, there can be no assurance that Carmanah will be successful in negotiating divestiture transactions for either or both of these businesses on acceptable terms. Carmanah does not expect to provide further updates on the divestiture process until such time as binding agreements relating to one or both of these divestitures are executed and delivered.
About Carmanah Technologies Corporation
Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient and cost-effective solutions for industrial applications that perform in some of the world's harshest environments. We manage our business within three reportable segments: Signals, Illumination and Power. The Signals segment includes serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine and Traffic markets. The Illumination segment provides solar powered LED outdoor lights for municipal and commercial customers. The Power segment serves both On-Grid and Off-Grid verticals.
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 or Sabik to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the off shore wind safety market or our ability to participate in any growth and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management's current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
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.
Carmanah Technologies Corporation
Chief Financial Officer/Corporate Secretary