VICTORIA, BC, CANADA Carmanah Technologies Corporation (TSX:CMH) (the “Company” or “Carmanah”) announced today it has sold to Globalstar, Inc. (“Globalstar”) a perpetual license to use its SmartOne SolarTM intellectual property as well as other assets, including production equipment. The SmartOne SolarTM is a solar-powered IoT asset tracking device (with ATEX and intrinsically safe certifications) that provides a low power and secure monitoring solution for a variety of security applications.
The purchase agreement releases both parties from the exclusive supply agreement signed in August 2016, under which Carmanah designed and manufactured Globalstar’s SmartOne SolarTM. Under the terms of the purchase agreement, Globalstar paid Carmanah USD $0.7 million. Carmanah will convert component inventory of approximately USD $0.5 million to cash. The conversion will take place over the course of the forthcoming four months.
“The sale of the manufacturing and supply agreement with Globalstar allows us to focus resources on our residual business segments,” said John Simmons, CEO. “We wish Globalstar continued success with the highly popular SmartOne SolarTM device.”
Dave Kagan, CEO of Globalstar, commented, “We are excited to have acquired the SmartOne SolarTM assets from Carmanah in order to better leverage this technology by improving profitability from the growing sales of this device and to support the further expansion of our commercial IoT solutions. We value the partnership with Carmanah and appreciate their efforts to bring this successful product to market.”
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.
About Globalstar, Inc.
Globalstar is a leading provider of customizable Satellite IoT Solutions for customers around the world in industries such as oil and gas, transportation, emergency management, government, maritime and outdoor recreation. A pioneer of mobile satellite voice and data services, Globalstar allows businesses to streamline operations by connecting people to their devices, supplying personal safety and communication, and automating data to more easily monitor and manage mobile assets via the Globalstar Satellite Network. The Company’s Commercial IoT product portfolio includes the industry-acclaimed SmartOne asset tracking products, Simplex satellite transmitters, and the SPOT® product line of personal safety, asset and communication devices, all supported on SPOT My Globalstar, a robust cloud-based back office solution. Completing the satellite product suite are Duplex satellite data modems, the innovative Sat-Fi2 satellite Wi-Fi hotspot, with all product solutions offering a variety of data service plans. Learn more at Globalstar.com
Carmanah Technologies Corporation:
Evan Brown, (250) 380-0052
Chief Financial Officer/Corporate Secretary
This release may contain “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. 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 herein include, but are not limited to, use of proceeds from the Transaction, and estimated revenues for the Residual Businesses in the trailing 12-months, and are based on management’s current expectations and assumptions that, while considered reasonable by management, are inherently subject to business, market and economic risks, uncertainties, and contingencies which may cause the actual results, performance, or achievements of Carmanah 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. Risk factors include, among others: risks related to certain conditions contemplated by the Agreement.
For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (“AIF”) and Annual MD&A (“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 the AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah. Accordingly, readers should not place undue reliance on forward-looking statements. Carmanah does not assume any obligation to update the forward-looking information contained in this press release, unless required by law.