Carmanah Announces Normal Course Issuer Bid
VICTORIA, British Columbia, June 05, 2019 (GLOBE NEWSWIRE) -- Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announced that the Toronto Stock Exchange (the “TSX”) has accepted the Company’s notice of its intention to make a normal course issuer bid (the “Bid”) to purchase up to 971,709 of its common shares, representing approximately 10% of its public float as of May 31, 2019. The total number of common shares issued and outstanding as of May 31, 2019 was 18,277,915.
Purchases pursuant to the bid will be made on the open market through the facilities of the TSX or alternative Canadian marketplaces. The period of the Bid will begin on June 13, 2019 and will continue until June 12, 2020 or an earlier date should the Company complete its purchases.
The average daily trading volume of Carmanah's common shares over the six month period ending May 31, 2019, as calculated per the TSX rules, was 44,776 common shares. Consequently, under TSX rules, Carmanah will be allowed to purchase daily, through the facilities of the TSX, a maximum of 11,194 common shares representing 25% of such average daily trading volume, subject to certain exceptions for block purchases.
Carmanah will pay the market price at the time of acquisition of any common shares in accordance with the rules and policies of the TSX and applicable securities laws. All common shares acquired by the Company under the Bid will be cancelled and purchases will be funded out of Carmanah’s working capital. Although the Company has a present intention to acquire its common shares pursuant to the Bid, it is not obligated to make any purchases.
Carmanah is undertaking the Bid because, in the opinion of its board of directors, the market price of its common shares, from time to time, may not fully reflect the underlying value of the Company’s business. The Company believes that in such circumstances, the outstanding common shares represent an appealing investment for Carmanah since a portion of the Company’s excess cash generated on an annual basis can be invested for an attractive risk adjusted return on capital through the Bid.
Under the current normal course issuer bid, which will expire on June 12, 2019, Carmanah obtained approval to purchase up to 1,264,446 common shares. Carmanah purchased 1,264,364 common shares under the current bid on the open market through the facilities of the TSX and other Canadian exchanges at a weighted average price paid of $6.87 per common share.
In connection with the Bid, Carmanah has entered into an automatic share purchase plan agreement with GMP Securities LP.
A copy of the Company’s notice of its intention to make the Bid filed with the TSX can be obtained from the Corporate Secretary of Carmanah without charge.
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 Offshore. The Signals segment serves the Traffic and Telematics markets. The Illumination segment provides solar powered LED outdoor street lights for municipal and commercial customers, while the Offshore segment specializes in the provision of comprehensive safety and marking systems for offshore wind farms.
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,” “estimates,” “could,” “will” or variations of such words and phrases. Forward-looking statements or information in this news release relate to, among other things: revenues, and revenue growth. 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.
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.