Carmanah Technologies Corporation (TSX VE: CMH) announced it has entered into an agreement for a private placement of $10 million in common shares with a syndicate of underwriters, led by GMP Securities Ltd. and including Canaccord Capital Corporation and Sprott Securities Inc.
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 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.”
Carmanah expects the offering will close on or about December 12, 2005. The Common Shares will be subject to a four-month hold period from closing.
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