Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announces that it has reached a mediated settlement in its lawsuit against Royal & Sun Alliance Insurance Company of Canada (“RSA”) and Integro (Canada) Ltd. (“Integro”). This lawsuit was commenced by Carmanah on March 6th, 2015 and announced by news release on March 9th, 2015.
The settlement results in a lump sum payment to the Company of CAD $0.5 million for past defense costs. Further, RSA has agreed to cover 70% of future defense costs. However, in the event that the underlying action proceeds to trial and a verdict is rendered, a reallocation of the go forward defense costs may occur
The underlying lawsuit in which Carmanah is a defendant is a civil action initiated by R.D. Jones, Stop Experts, Inc., and RRFB Global, Inc. in the United States District Court of the Southern District Florida on July 18th, 2013. The suit, which alleges patent infringement with respect to a specific flash pattern used in the Company’s solar powered flashing beacons for the traffic safety market and makes further claims relating to advertising and business practices, is currently stayed pending an appeal by the plaintiff to the US Patent and Trademark Office as to the validity of certain claims in its patent. The Company continues in its belief that the lawsuit is without merit.
About Carmanah Technologies Corporation
Headquartered in Victoria, British Columbia, Carmanah produces a portfolio of products focused on energy optimized LED and solar technologies. We design, develop and distribute energy efficient LED solutions for infrastructure including: signaling systems for the marine aids to navigation, airfield ground lighting, offshore wind marking, aviation obstruction and traffic markets. Carmanah’s product portfolio also includes industrial and commercial solar powered outdoor LED lighting systems, and solar on and off-grid power generation systems. Since 1996, we have earned a global reputation for delivering strong and effective products for industrial applications that perform reliably in some of the world’s harshest environments. Our LED and solar power systems provide durable, dependable, efficient and cost-effective solutions which have been deployed in over 400,000 installations in 110 countries. The Carmanah brand portfolio includes Go Power! and recently acquired companies, Sol and Sabik.
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,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. 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. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the off shore wind safety market or our ability to participate in any growth and other general uncertainties that may impact actual outcomes. 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.