VICTORIA, BRITISH COLUMBIA--(Marketwired - April 4, 2017) - Carmanah Technologies Corporation (TSX:CMH) ("the Company" or "Carmanah") today announced that its wholly owned subsidiary, Carmanah Solar Power Corp. ("CSPC"), has completed the sale of its solar power engineering, procurement and construction business ("Solar EPC"). The proceeds of the asset sale were USD $2.0 million and is subject to final adjustments.
In addition to these proceeds CSPC will retain responsibility for four solar power construction portfolios that are at, or close to substantially complete. It is expected that these portfolios will achieve final completion before the end of 2017. While most of the revenue related to these portfolios has been recognized, CSPC expects to collect accounts and notes receivable in excess of USD 5.4 million on final completion. Once the requirements of the remaining portfolios are complete, CSPC will permanently cease its solar power EPC business.
"In October of 2016 we announced our intention to divest our two Power Segment businesses. The sale of our solar EPC business completes the first part of this task and we maintain our intention to divest of our off-grid solar power business." said John Simmons CEO. "We intend to use the proceeds of these divestitures, together with cash in hand, to invest in the growth of our strategic Lighting and Signals businesses organically and by way of acquisition."
The proceeds of the sale of business together with the collection of all amounts owing on retained projects will generate in excess of USD 7.4 million.
Alexander Capital Group Inc. advised Carmanah in the sale of Solar EPC.
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.
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.