Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today announced its intention to divest its Power Division businesses.
The Company’s Power Division is comprised of two separate businesses:
- Off-Grid Power – The Company’s off-grid power business, which operates under the trade name Go Power! provides solar power solutions for the recreational vehicle and industrial work truck markets through OEM and aftermarket channels. It is headquartered in Victoria, Canada.
- On-Grid Power – The Company’s on-grid power business designs and builds ground mount and rooftop solar power plants for developers under the Carmanah Solar EPC Services trade name. It is headquartered in Toronto, Canada.
The Company has retained Canaccord Genuity Corp. to advise on the divestiture of Go Power! Separately, Alexander Capital Group Inc. has been retained to advise on the divestiture of Carmanah Solar EPC.
“These divestitures will enable us to focus on our vision to become the global leader in signals and solar LED illumination for infrastructure,” said John Simmons, CEO. “The proceeds of the divestitures will allow us to accelerate organic growth initiatives, make more substantive investments in innovation and support our continuing effort to acquire leading contenders in the signals space.”
Carmanah’s Power Division represented approximately 35% of Carmanah’s revenue in the nine months ended September 30, 2016. In the third quarter, the Company will be accounting for the division as a discontinued operation. As such Carmanah’s preliminary third quarter results, which are to be released by separate news release, will also exclude this segment.
At this point, there can be no assurance that Carmanah will be successful in negotiating divestiture transactions for either or both of these businesses on acceptable terms. Carmanah does not expect to provide further updates on the divestiture process until such time as binding agreements relating to one or both of these divestitures are executed and delivered.