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VICTORIA, BRITISH COLUMBIA--(Marketwired - Mar 9, 2016) - Carmanah Technologies Corporation (TSX:CMH) (the "Company" or "Carmanah"), today announced that the Toronto Stock Exchange (the "TSX") has accepted the Company's notice of its intention to make a normal course issuer bid (the "Bid") to purchase up to 1,426,386 of its common shares, representing approximately 10% of its public float as of March 7, 2016. The total number of common shares issued and outstanding as of March 7, 2016 was 24,640,248.
Purchases pursuant to the bid will be made on the open market through the facilities of the TSX or alternative Canadian marketplaces. The period of the Bid will begin on March 14, 2016 and will continue until March 13, 2017 or an earlier date should the Company complete its purchases.
The average daily trading volume of Carmanah's common shares over the six month period ending February 29, 2016, as calculated per the TSX rules, was 39,836 common shares. Consequently, under TSX rules, Carmanah will be allowed to purchase daily, through the facilities of the TSX, a maximum of 9,959 common shares representing 25% of such average daily trading volume, subject to certain exceptions for block purchases.
Carmanah will pay the market price at the time of acquisition of any common shares in accordance with the rules and policies of the TSX and applicable securities laws. All common shares acquired by the Company under the Bid will be cancelled and purchases will be funded out of Carmanah's working capital. Although the Company has a present intention to acquire its common shares pursuant to the Bid, it is not obligated to make any purchases.
Carmanah is undertaking the Bid because, in the opinion of its board of directors, the market price of its common shares, from time to time, may not fully reflect the underlying value of the Company's business. The Company believes that in such circumstances, the outstanding common shares represent an appealing investment for Carmanah since a portion of the Company's excess cash generated on an annual basis can be invested for an attractive risk adjusted return on capital through the Bid.
A copy of the Company's notice of its intention to make the Bid filed with the TSX can be obtained from the Corporate Secretary of Carmanah without charge.
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.
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.