Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announced that it has reached a mutual settlement to cease efforts on a joint project to develop landing lights with Tactical Lighting Systems Inc. (“Tactical”) as previously announced on May 19th, 2015. The original contract was awarded on a cost-plus-incentive-fee basis to Tactical by the United States Naval Air Warfare Center (“NAVAIR”), Aircraft Division. Within this contract Carmanah was to be a sub-contractor to Tactical. As part of the settlement, Tactical has reimbursed Carmanah for all costs incurred to date and neither party will have joint development obligations under the NAVAIR contract.
The decision to cease efforts was taken on a joint and mutual basis by Tactical and Carmanah. The decision was reached after significant operational challenges arose under the prime contract requirements to comply with the U.S. International Traffic in Arms Regulations (“ITAR”). ITAR regulations placed significant barriers for Carmanah and Tactical to work jointly on the project and still comply with the export controls required under ITAR.
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.
Contact
Carmanah Technologies Corporation:
Evan Brown, (250) 380-0052
Chief Financial Officer/Corporate Secretary
investors@carmanah.com
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.