Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) announces today that it has amended its previously announced commitment letter from the Canadian Imperial Bank of Commerce (“CIBC”) with respect to a multifaceted credit facility. The new total is USD $25.5 million.
The commitment includes:
· USD $10.0 million 364-Day Committed Revolving Credit, expiring June 15, 2018;
· USD $15.0 million Revolving Term Acquisition Credit;
· USD $0.5 million Credit for Trading Room Contingent Liabilities.
“We are pleased to announce these changes to our credit facilities as we continue to grow our business both organically and by way of strategic acquisition,” said John Simmons, Chief Executive Officer. “These credit facilities, and working with CIBC, will be instrumental in supporting these growth plans through 2017 and beyond.”
The Company’s ability to draw on the 364-Day Committed Revolving Credit, Revolving Term Acquisition Credit, Standby Letters of Credit and Credit for Trading Room Contingent Liabilities is subject to borrowing covenants and conditions typical to these credits. Each of the credits have separately applicable interest rates. As part of the previous agreement, the Company will pay CIBC monthly monitoring fees, annual fees and standby fees for the unused portions of the credits all of which are typical to these arrangements.
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 Power. The Signals segment includes serves the Airfield Ground Lighting, Aviation Obstruction, Offshore Wind, Marine and Traffic markets. The Illumination segment provides solar powered LED outdoor lights for municipal and commercial customers. The Power segment serves the Off-Grid solar market.
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.