Carmanah Technologies Corporation Announces $10,000,000 Private Placement Financing
Victoria, British Columbia, Canada - Tuesday, December 15, 2005 - Carmanah
Technologies Corporation ("Carmanah") (TSX VE: CMH) is pleased to announce
that it has entered into an agreement with a syndicate of underwriters, led
by GMP Securities Ltd. and including Canaccord Capital Corporation and
Sprott Securities Inc., for a "bought-deal" private placement financing of
common shares ("Common Shares") for gross proceeds of $10,000,000 (the
"Private Placement").
Pursuant to the Private Placement, Carmanah will issue 3,125,000 Common
Shares at a price of $3.20 per Common Share. GMP will also have the option
to purchase up to an additional 1,562,500 Common
Shares on identical terms from Carmanah, which option may be exercised at
any time until one day prior to the closing of the Private Placement.
Net proceeds from this offering will be used by Carmanah to:
- increase the Company's working capital;
- support the Company's expansion of facilities in Victoria, BC, Calgary,
AB, Santa Cruz, CA and London, England;
- pursue synergistic acquisition opportunities that will add to the
Company's leadership position within the solar, solar/LED and LED markets
with finished integrated products.
"We are pleased to be represented and supported in this financing by such
strong corporate finance partners", states Art Aylesworth, Carmanah's CEO.
"It is positive recognition of our progress to-date,
and we look forward to the expanded institutional investor base that we
expect this transaction to bring to the Company."
The closing of the Private Placement is subject to a number of conditions,
including (among others) the availability of applicable prospectus
exemptions. Carmanah expects that the offering will close on or about
December 12, 2005. The Common Shares will be subject to a four-month hold
period from closing.
The Common Shares have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States,
or to a U.S. person, absent registration or an applicable
exemption therefrom. The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release. This
news release is intended for distribution in Canada
only and is not intended for distribution to United States newswire services
or dissemination in the United States.
For further information, please contact:
David Davies
Tel: (250) 382-4332
ddavies@carmanah.com
