VICTORIA, BRITISH COLUMBIA, CANADA (September 20, 2011) Carmanah Technologies Corporation (TSX: CMH), announced today that it has entered into a settlement agreement to end the $6.0 million Lightech lawsuit relating to the 2010 terminated merger agreement between Lightech and Carmanah. As part of the settlement agreement, Carmanah agreed to drop its $625,000 counter lawsuit against Lightech. Completion of the settlement agreement is subject to ratification by the Israeli courts.
Under the terms of the settlement agreement, the parties agreed to unconditionally and forever waive and release each other from any claims and/or demands they may have now, or in the future, against each other. It is also expressly provided that nothing in the settlement agreement constitutes an admission by Carmanah to any of the claims made by Lightech against it. Carmanah will forego the $312,500 investment previously made in Lightech in 2010 and, after taking into account the recovery of certain expenses, Carmanah will receive, in effect, the $312,500 currently held in escrow in Israel.
“With this settlement, we avoid the significant distraction and costs of pursuing and defending litigation in two countries”, said Ted Lattimore, Carmanah’s President and Chief Executive Officer. “Although we believe that the allegations against us were without merit and we were prepared to vigorously defend our position, we are pleased to be able to put this matter behind us. The settlement is a reasonable break fee as a result of the terminated merger agreement.”
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About Carmanah Technologies Corporation
As one of the most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world’s harshest environments, Carmanah solar LED lights and solar power systems provide a durable, dependable and cost effective energy alternative. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol “CMH”. For more information, visit www.carmanah.com.
As one of the most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world’s harshest environments, Carmanah solar LED lights and solar power systems provide a durable, dependable and cost effective energy alternative. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol “CMH”. For more information, visit www.carmanah.com.
For further information:
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Investors:
Investor Relations: Roland Sartorius, CFO
Toll-Free: 1.877.722.8877
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Media:
Public Relations: David Davies
Tel: +1.250.382.4332
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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 to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. 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. 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.