Carmanah Technologies Corporation
TSX : CMH

Carmanah Technologies Corporation

July 02, 2015 09:36 ET

Carmanah Completes Acquisition of Sabik Group of Companies

VICTORIA, BRITISH COLUMBIA--(Marketwired - July 2, 2015) - Carmanah Technologies Corporation (TSX:CMH) ("the Company" or "Carmanah") today announces that it has completed an acquisition of the Sabik Group of Companies ("Sabik"). The Company had previously announced a deal to acquire Sabik on June 10, 2015 after the signing of a share purchase agreement (the "Agreement").

"The acquisition of the Sabik Group of Companies is an important step towards our goal of being the worldwide leader in the marine aids to navigation industry," said John Simmons, Carmanah CEO. "The acquisition also catapults Carmanah into a new market - the safety marking of offshore wind installations - which is a fast growing market."

Under the terms of the Agreement, Carmanah has acquired 100% of Sabik OY based in Finland, 100% of Sabik GmbH based in Germany, 100% of Sabik PTE Ltd. based in Singapore, 81% of Sabik Ltd. based in the United Kingdom and 80% of Sabik Offshore Ltd. based in the United Kingdom. The purchase price of EUR21.5 million was paid by way of EUR17.2 million in cash and EUR4.3 million in Carmanah shares which will resulted in the issuance of 1,180,414 shares from treasury. As part of the transaction, Carmanah borrowed USD $10.0 million from CIBC pursuant to the credit facilities announced on January 12, 2015.

About Carmanah Technologies Corporation

Since its founding in 1996, Carmanah has become one of the most trusted names in solar technology, delivering reliable and cost-effective solar powered products and systems for industrial applications worldwide. To date, Carmanah's solutions for marine navigation, airfield ground lighting, aviation obstruction, roadway illumination, parking lot lighting, as well as on and off-grid power generation, have been successfully deployed in over 400,000 installations in 110 countries with proven performance in conditions ranging from desert heat to arctic cold.

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.

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