VICTORIA, BRITISH COLUMBIA, CANADA (August 30, 2012) Carmanah Technologies Corporation (TSX: CMH) is pleased to announce that it has closed a non-brokered private placement (“Placement”) of 3,981,722 common shares for gross proceeds of CDN $ 1,791,775. The Placement consisted of common shares priced at CAD $0.45 per common share (“Share Price”). The common shares are subject to a hold period of four months plus one day from the closing of the Placement.
Insiders, of Carmanah, as defined by the regulations of the TSX Exchange including directors, management and MUUS Holdings LLC (“MUUS”), a shareholder holding 17.2% of the company’s pre-Placement issued common shares, participated in 94% of the Placement. MUUS, a company controlled by Michael Sonnenfeldt, participated in 50% of the Placement and with that, increased its shareholding to 19.99% of the total post-Placement issued common shares.
Funds raised from the Placement will be used to fund strategic acquisitions, product development and working capital purposes.
About Carmanah Technologies Corporation
As one of the most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world's harshest environments, Carmanah solar LED lights and solar power systems provide a durable, dependable and cost effective energy alternative. Carmanah pursues its business strategy within six distinctive product offerings: outdoor lighting, marine signal, aviation signals, traffic signals, grid-tie and mobile. Carmanah is actively seeking additional product sales opportunities to add to its top line revenue, as well as extending existing product lines through internal development efforts, strategic business relationships as well as focused acquisitions. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol "CMH”. For more information, visit www.carmanah.com.
For further information:
Roland Sartorius, CFO
Forward-Looking Statements and Information
This news release contains “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements are generally identifiable by use of the words “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “budgets,” “could,” “estimates,” “expects,” “forecasts,” “projects” and similar expressions, and the negative of such expressions. Forward-looking statements in this news release include statements about potential acquisition targets; product development and the plans of management; additional product sales opportunities; increased top line revenue; and extending existing product lines through internal development efforts, strategic business relationships as well as focused acquisitions.
With respect to the forward-looking statements contained in this news release, Carmanah has made numerous assumptions regarding, among other things the ability to complete acquisition transactions; and additional product sales and extending existing product lines resulting in increased top line revenues. While Carmanah considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies.
Additionally, there are known and unknown risk factors which could cause Carmanah’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained herein. Known risk factors include, among others: there can be no assurance that Carmanah will be able to complete any relevant acquisitions; there can be no assurance that the Company will not require additional financing, as well as the uncertainty as to the terms and to the availability of future financing; there can be no assurances that the Company can increase or maintain current top line revenue; there can be no assurances that the Company will achieve additional product sales; and there can be no assurances the Company can extend existing product lines through internal development efforts, strategic business relationships and focused acquisitions.
A more complete discussion of the risks and uncertainties facing Carmanah appears in Carmanah’s most recently filed Annual Information Form, Annual MD&A, and other continuous disclosure filings which are available on SEDAR at www.sedar.com and on the Company’s website at Carmanah disclaims any obligation to revise or update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, except as required by law.