Carmanah Technologies Corporation (Toronto: CMH.TO) announced today it will be selling the inventories and other assets of its solar home power business to David Egles.
Egles has resigned as a member of the Carmanah Board of Directors in order to pursue the opportunity as a private business.
The sale follows Carmanah’s announcement on November 22, 2007, declaring the Company’s plan to narrow its focus.
According to Carmanah CEO Ted Lattimore, this arrangement offers an attractive outcome for all stakeholders. "As Carmanah’s new strategic direction no longer includes the home power market, we’re pleased to see this arrangement in place," said Lattimore. "It’s a great opportunity for Dave to remain involved in a market in which he has played a large role over the past 20 years, and it’s also an easy transition for home power customers looking for smaller scale solutions for their home or cottage. Lastly, by selling the assets and obligations of our home power division, we can efficiently and effectively recapture and redirect our capital to our core strategic markets," added Lattimore. "All of this helps in our commitment to deliver quality solar-powered technology, while continuing to grow revenue, margin and market share from a portfolio of more closely aligned offerings. This transaction does not restrict Carmanah from re-entering the solar home power market at any point in the future."
Egles, or an incorporated company controlled by him, will pay $1.5M to Carmanah Technologies Corporation with $1.15M attributed to Carmanah’s solar home power inventory and $350,000 for equipment and fittings at the business’s leased facility in Barrie, Ontario as well as access to marketing material, customer and vendor lists, and an amendment to his non-compete agreement that permits him to return only to the solar home power business.
About Carmanah Technologies Corporation
With more than 250,000 installations worldwide, Carmanah is one of the world’s premier suppliers of renewable and energy-efficient technologies, including solar-powered LED lighting, solar power systems & equipment and LED illuminated signage. From its global headquarters in Victoria, British Columbia, Canada, Carmanah oversees a network of branch offices and sales representatives across Canada, the United States and the United Kingdom.
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