Eguana Announces Closure of $ 5.0 Million Strategic Project
CALGARY, Alberta, March 16, 2020 (GLOBE NEWSWIRE) – Eguana Technologies Inc. (“Eguana“or the”Society“) (TSXV: EGT) (OTCQB: EGTYF) is pleased to announce the closing of the strategic investment previously announced by Itochu Corporation (“Itochu“) of $ 5 million in the form of unsecured convertible debentures (the”Debentures“) of the Company under the conditions detailed below.
“The integration and testing of Moixa GridShare AI with our Eguana Evolve is expected to be completed later this month and will be available for field testing in April. The new product will open up additional third party ownership (TPO) and fleet aggregation channels through our strategic partnership with Itochu, ”commented Justin Holland, CEO of Eguana. “We will also begin the transition of the battery supply chain to Itochu, which will further reduce initial working capital requirements and bring consistency to the availability of our battery modules as we continue to increase our operations and clear orders from Hawaii, California and South Australia. . “
As previously indicated, the use of the financing proceeds will be used to finance the working capital and general expenses of the Company.
The history of ITOCHU Corporation dates back to 1858, when the founder of the company, Chubei Itoh, began trading in linen. Since then, ITOCHU has evolved and grown over more than 150 years. With around 110 bases in 63 countries, ITOCHU, one of the main sogo shosha, engages in domestic trade, import / export and overseas trade of various products such as textiles, machinery, metals, minerals, energy, chemicals, food, general commodities, real estate, information and communications technology and finance, as well as business investment in Japan and the United States. ‘foreigner.
About Eguana Technologies inc.
Based in Calgary, Alberta Canada, Eguana Technologies Inc. (EGT: TSX.V) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. Eguana has two decades of experience in delivering power electronics to the edge of the grid for fuel cell, photovoltaic and battery applications, and provides proven, durable and high quality solutions from its manufacturing facilities. high capacity in Europe and North America.
With thousands of its proprietary energy storage inverters deployed in European and North American markets, Eguana is one of the leading providers of power controls for solar self-consumption, grid services and utility charging applications. demand at the edge of the network.
About the offer
The debentures will mature and will be redeemable on March 13, 2023 (“Due date“). The Debentures have a coupon of 10% per annum, payable in cash or additional common shares in the capital of the Company (the”Ordinary actions“), compounded semi-annually and payable semi-annually or on the prior date on which the Debentures are converted in accordance with their terms.
At any time prior to the Maturity Date, the principal amount, together with accrued interest in certain circumstances, of the Debentures will be convertible into units of the Company (the “”Units“) at a price of $ 0.15 per unit, each unit being composed of one common share and one-half common share purchase warrant (each whole warrant, a”To guarantee“). Each warrant will entitle its holder to acquire one additional common share at a price of $ 0.20 for a period of three (3) years following March 13, 2020 (the”Closing DateAssuming the full conversion of the debentures and warrants issuable upon conversion of the debentures, Itochu will acquire a 14.0% interest in the Company calculated as of the date hereof on a fully diluted basis.
From the date which falls four months plus one day following the closing date, the Company will have the right to require the conversion of the Debentures into Units on at least 30 days’ notice to Itochu in the event that the weighted average of the daily trading volume of the common shares on the TSX Venture Exchange (the “TSXV“) is greater than $ 0.30, subject to adjustment, for 20 consecutive trading days.
Upon closing of the financing, the Company and Itochu entered into an amended marketing agreement. As part of the agreement, Itochu will purchase and supply Eguana with lithium batteries needed to manufacture Eguana products.
The Company and Itochu have also entered into an Investor Rights Agreement (the “Investor Rights AgreementIn accordance with the Investor Rights Agreement, the Company has granted Itochu an observer right on the board of directors and, subject to Itochu holding a fully diluted 20% or greater interest, a right The Company has also granted Itochu a right, subject to certain conditions, to subscribe for additional ordinary shares up to a certain fully diluted ownership threshold of at least 20% and up to 25%, the whole as more fully described in the Investor Rights Agreement The agreement will be available on the Company’s SEDAR profile.
Itochu has entered into a commitment with the TSX Venture Exchange not to acquire common shares (including through the exercise of warrants and debentures), which would allow it to hold 20% or more of the outstanding common shares. , unless the Company has obtained shareholder approval in accordance with the policies of the TSXV.
Additional information is available on SEDAR.com
Company information requests
Eguana Technologies Inc.
To learn more, visit www.eguanatech.com or follow us on Twitter @EguanaTech
The reader is cautioned that some of the information contained in this document may constitute forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of Regulation 51-102 respecting Continuous Disclosure Obligations and other laws. on relevant securities. . In particular, we include, among others: the use of proceeds and the Company’s ability to comply with the terms of the Debentures, including, but not limited to, interest payments and principal payments.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company, or future events or developments, to differ materially from those expressed or implied by forward-looking information. These factors include, but are not limited to, the risks associated with: general economic, market and business conditions; industry capacity; the operations of Eguana’s assets, the competitive action of other companies and other factors set out in the “Risk Factors” section the most recent annual MD&A of the Company for the fiscal year ended September 30, 2019, which can be viewed on its website or at sedar.com. Readers are cautioned not to place undue reliance on forward-looking information, which is only valid as of the date hereof. The Company does not undertake to publicly disclose any revisions to the forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unforeseen events, except as may be required. by applicable securities laws.
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of TSXV) accepts responsibility for the adequacy or accuracy of this release.