Eguana Arranges Short-Term Financing
March 08 2024 - 5:00PM
Eguana Technologies Inc. (TSXV: EGT) (OTCQB:
EGTYF) ("
Eguana" or the
“
Company”), a leading developer and manufacturer
of high-performance energy storage systems, announces the
completion of short-term financing arrangements, to support
near-term liquidity.
The Company has entered into short-term loan
agreements to increase the Company’s short-term working capital and
bridge cash flow, to incoming funds from the previously announced
inventory return, in the news releases dated February 7, 2024, (the
“Inventory Return”).
The Company closed short-term bridge loan
financing (the "Bridge Financing") in the
principal amount of approximately $220,000, with certain lenders,
including the Company's Chief Executive Officer and members of the
Board of Directors. A portion of the Bridge Financing was received
in US dollars and a portion in Canadian dollars and will be
repayable in the respective currencies. The principal amount of the
Bridge Financing, together with interest accrued thereon, will
become due and payable on April 30, 2024 (the "Maturity
Date"). Interest shall accrue on the principal amount at a
rate of 5% per month. The lenders will not receive any other fees
or commissions. The Bridge Financing is unsecured. The proceeds of
the Bridge Financing will be used for general working capital.
“The Bridge Financing is important to allow the
Company to continue various operations, while awaiting funds from
the Inventory Return anticipated later in March,” said Justin
Holland, CEO, “and we appreciate the participants in the Bridge
Financing for their confidence in the Company as we continue
executing our VPP roll outs along with objectives in Europe and
Australia.”
The portions of the Bridge Financing obtained
from the Company's Chief Executive Officer and Board Chair
constitute related-party transactions under Multilateral Instrument
61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). This transaction is exempt from the
formal valuation and minority shareholder approval requirements of
MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as
neither the fair market value of the transaction, nor the
consideration paid to the lenders of the Bridge Financing, who are
related parties of the Company, would exceed 25% of the Company's
market capitalization.
In the February 7, 2024 new release, the Company
outlined that it is exploring potential alternatives to improve
liquidity and enhance shareholder value, and this remains ongoing,
as Eguana manages short-term liquidity. At present, there can be no
assurance as to what, if any, further alternatives might be pursued
by the Company, nor if this Bridge Financing is adequate to meet
all short-term obligations. The Company does not intend to disclose
further details with respect to its review or actions taken, unless
and until the Board of Directors has approved a transaction or
otherwise determines that further disclosure is warranted.
About Eguana Technologies
Inc.
Eguana Technologies Inc. (EGT: TSX.V) (OTCQB:
EGTYF) designs and manufactures high performance residential and
commercial energy storage systems. The Company also markets and
sells a suite of micro inverter products, which are integrated with
its energy storage platform providing consumers with full solar +
storage system architecture, for residential and commercial
applications. Eguana has two decades of experience delivering grid
edge power electronics for fuel cell, photovoltaic and battery
applications, and delivers proven, durable, high-quality solutions
from its high-capacity manufacturing facilities in North America,
Europe, and Australia.
With thousands of its proprietary energy storage
inverters deployed in the European and North American markets,
Eguana is one of the leading suppliers of power controls for solar
self-consumption, grid services and demand charge applications, at
the grid edge. Focused on distributed energy storage applications
located at the point of energy consumption, Eguana provides
cost-effective solutions to modernize the power grid, from the
consumer to the electricity retailer, the distribution utility, and
the system operator.
To learn more, visit
www.EguanaTech.com or follow us on Twitter
@EguanaTech
Company Inquiries
Justin Holland, CEOEguana Technologies Inc. +1.416.728.7635
Justin.Holland@EguanaTech.com
Forward Looking Statements
The reader is advised that all information
herein, other than statements of historical fact, may constitute
forward-looking statements and forward-looking information
(together, "forward-looking statements") within
the meaning assigned by National Instrument 51-102 - Continuous
Disclosure Obligations and other relevant securities legislation.
In particular, forward-looking statements include, among other
things, the Company’s cash flow needs, the Inventory Return and the
use of proceeds of the Bridge Financing. Forward-looking statements
are not a guarantee of future performance and involves a number of
risks and uncertainties. Many factors could cause the Company's
actual results, performance or achievements, or future events or
developments, to differ materially from those expressed or implied
by the forward-looking information. Such factors include, but are
not limited to, risks associated with: failure by the Company to
improve cash flow which would have a material adverse impact on the
viability of the business to continue operating; timely collection
of accounts receivable; general economic, market and business
conditions; competitive factors; achieving strategic objectives;
unanticipated effects of the reduction to headcount; delays to the
Company’s receipt of payment associated with the inventory return,
if at all; inability to or delays in sourcing materials; failure by
the Company to improve liquidity; and other factors set out in the
"Risk Factors" section of the Company's management's discussion and
analysis for the three and nine months ended September 30, 2023 and
annual information form dated November 29, 2023, which may be found
on its website or at www.sedarplus.ca. Readers are cautioned not to
place undue reliance on forward-looking information, which speaks
only as of the date hereof. The Company does not undertake any
obligation to release publicly any revisions to forward-looking
statements contained herein to reflect events or circumstances that
occur after the date hereof or to reflect the occurrence of
unanticipated events, except as may be required under applicable
securities laws.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
news release.
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