Carmanah Technologies (TSX: CMH) announced that it has sold its LED edge-lit signs business, Carmanah Signs Inc. (CSI) to David Green–founder of Carmanah and a current board member, who will resign from that position as a condition of the sale.
Carmanah said with the sale of the business, it can focus on strategic solar lighting and technology markets.
Under the agreement, Green, through an incorporated company controlled by him, will pay a combined total of approximately $2 million for the shares of CSI and for repayment of CSI’s inter-company debt to Carmanah Technologies Corporation. The deal includes a combination of cash payments and a common share buy-back by Carmanah of approximately 1 million of the company’s shares owned by Dr. Green. These common shares will be returned to Treasury.
Carmanah has been pursuing the sale of CSI for several months independently as well as seeking the services of an independent broker with no other acceptable offers being presented. Carmanah said the offer presented by Green met Carmanah’s objective of receiving, at a minimum, net book value for the business as well as provided attractive payment terms that included re-payment of the inter-company debt, short settlement dates and rapid closure of the deal.
Following the transaction, Green will maintain an equity position in Carmanah, representing approximately 3% of the total common shares outstanding.
Green founded Carmanah in 1995, becoming Chairman when the Company went public in 2000. He resigned as Chairman in May, 2009, but stayed on the Board to assist the new Chairman with the transition into his new role.
According to Green, he looks forward to retiring from the Board to pursue this private business venture, confident that Carmanah’s strategic growth plan is in capable hands. "Ted Lattimore, the new CEO, has completed a restructuring that has refocused Carmanah on its core strengths, developed a network of partners, and articulated a strategic plan that has the consensus of all of the management team." Dave concludes, "I look forward to returning to what I do best: developing an earlier stage company."
In Related News…
Merger and acquisition activity is awakening in the Canadian cleantech sector, following a year of relative inactivity due to economic downturn.
Read the full Reuters report at the link below.
Loading...