Vancouver, BC, Canada - (February 3, 2004) - Carmanah Technologies Corporation (TSX VE: CMH; Berlin and Frankfurt Stock Exchanges: QCX), is pleased to announce that it has reached an agreement with Canaccord Capital Corporation ("Canaccord") to raise $5.0 million on a bought deal basis (the "financing").
The financing will consist of a private placement of 3,030,303 units at a price of $1.65 per unit (a "Unit"). Each Unit will consist of one common share and one half of one (1/2) common share purchase warrant. Each full common share purchase warrant (a "Warrant") will entitle the holder to acquire one additional common share at an exercise price of $2.15 per share for a period of 18 months from the date of closing of the financing. In addition, Canaccord will have an over-allotment option to purchase up to an additional $750,000 worth of Units at a price of $1.65 per Unit until 48 hours prior to closing of the financing.
Canaccord will receive a cash commission of 7% of the gross proceeds of the financing and be granted an option to acquire that number of broker warrants equal to 10% of the number of Units sold. Each broker warrant entitles the holder to acquire one common share at a price of $2.15 per share until 18 months from the closing of the financing. Closing for the financing is expected to occur on or about February 19, 2004 and is subject to receipt of required regulatory approvals and the existence of applicable prospectus exemptions.
Carmanah anticipates that the proceeds from the financing will be used to further expand its industrial products sales and marketing efforts, to develop a consumer products division, as well as for general working capital purposes. "Carmanah is currently making excellent progress in several vertical markets and this additional capital will allow us to further secure our position in each of them." said Carmanah C.E.O. Art Aylesworth. "The rapid growth in the LED (light emitting diode) industry and the worldwide demand for solar technology is providing our company with significant growth potential and we can now be confident in our ability to finance all aspects of our business plan."
Carmanah is an award winning alternative energy manufacturer specializing in patented solar-powered LED lighting solutions for the marine, aviation, transit, roadway, railway and industrial worksite markets. The Company has more than 80,000 units installed in 110 countries. The shares of Carmanah Technologies Corporation (parent company) are publicly traded on the TSX Venture Exchange under the symbol "CMH" and on the Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For more information, please visit www.carmanah.com.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are described under the caption "Note Regarding Forward-looking Statements" and "Key Information - Risk Factors" and elsewhere in Carmanah's Annual Report for the fiscal year ended December 31, 2003, as filed with the U.S. Securities and Exchange Commission and which are incorporated herein by reference. These risks and uncertainties are also described under the caption "Risk Factors" in Carmanah's Annual Information Form dated December 31, 2003, as filed with the British Columbia Securities Commission and which are incorporated herein by reference. Carmanah does not assume any obligation to update the forward-looking information contained in this press release.