Vancouver, BC, Canada – (October 21, 2004) – Carmanah Technologies Corporation (TSX VE: CMH; Berlin and Frankfurt Stock Exchanges: QCX), is pleased to announce that it proposes to issue up to 2,000,000 common shares of the Corporation at a price of $0.74 per share pursuant to a private placement, for gross proceeds of up to $1,480,000. The private placement is subject to completion of formal documentation and receipt of regulatory approval. Canaccord Capital Corporation will receive a cash commission of 7.5 percent of the gross proceeds raised.
Carmanah also announces that a sale of 2,000,000 common shares (the “Traded Shares”) has been effected through the facilities of the TSX Venture Exchange. A total of 998,000 of the Traded Shares are held by control persons and / or other insiders of the Corporation, and have been sold to arm’s length, public shareholders. These new shareholders are four European institutions that can be categorized as Socially Responsible Investors with a focus on environmental technology. From the proceeds of the sale of the Traded Shares, the sellers will purchase common shares pursuant to the private placement listed above.
As a result of the insiders’ participation, the private placement of Carmanah may be classified as a “related party transaction.” The Corporation has determined that exemptions from various requirements of the TSX Venture Exchange’s Policy 5.9 are available. Given the existence of these exemptions, it is anticipated that the transaction will close less than 21 days from the date of the announcement of the private placement.
“Since 1998, Carmanah has sustained an average growth rate of 80% in annual revenues”, states Art Aylesworth, Carmanah’s CEO. “This funding will enable the company to broaden its business development and R&D activities. Market interest in our proprietary solar-powered LED technologies is strong, and we are serious about capitalizing on this multi-billion dollar market opportunity.”
Use of Funds
Carmanah will use the funds to propel the Company into new markets and applications of its proprietary platform technologies. Specifically, Carmanah has the following plans:
In addition, Carmanah will increase R&D resources as necessary to support its product development.
About Carmanah Technologies Inc.
Carmanah is an award winning alternative energy manufacturer specializing in patented, proprietary solar-powered LED lighting solutions for the marine, transit, roadway and railway markets. The company has more than 50,000 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 further information, please visit www.carmanah.com.
On Behalf of the Board of Directors
Carmanah Technologies Corporation
Praveen Varshney, Director
For further information, please contact.
Mr. David Davies
Telephone: (250) 382-4332
Corporate and Investor Contact:
Mr. Praveen Varshney, Director
Telephone: (604) 629-0264
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 our Annual Report for the fiscal year ended December 31, 2002, 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 our Annual Information Form dated December 31, 2002, as filed with the British Columbia Securities Commission and which are incorporated herein by reference. We do not assume any obligation to update the forward-looking information contained in this press release.