Vancouver, British Columbia, Canada - Friday, February 20, 2004 - - Further to its news release dated February 3, 2004, Carmanah Technologies Corporation (TSX Venture: CMH) is pleased to announce that it has closed its private placement financing for gross proceeds of CDN$5,750,000 (the "financing").
Pursuant to the financing, a total of 3,484,848 units were issued at a price of $1.65 per unit ("Unit"). Each Unit consists of one common share and one half (1/2) of one common share purchase warrant. Each full common share purchase warrant entitles 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.
Canaccord Capital Corporation acted as underwriter for the financing and received a cash commission of 7% of the gross proceeds of the financing and 348,484 agent's warrants (exercisable at a price of $2.15 per share for 18 months from the date of closing) as compensation. All securities issued pursuant to the private placement carry a four-month hold period.
"The speed at which this financing was closed, and the fact that it was oversubscribed by the maximum allowable 15%, are positive confirmation of the interest in Carmanah Technologies, our products and our vision", states Carmanah CEO, Art Aylesworth. "The management team at Carmanah is committed to investing in a significant presence in Europe, the United States and Southeast Asia while growing our market share in the company's core vertical markets. Building on our already strong balance sheet, this additional capital will enable us to keep pace with the expanding opportunities for our solar-powered LED technologies."
Carmanah is an award winning alternative energy manufacturer specializing in patented solar-powered LED lighting solutions for the marine, aviation, transit, roadway, railway and mining markets. The company currently 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.