Calgary, Alberta, March 8, 2024 (Globe Newswire) — Eguana Technologies Co., Ltd. (TSXV: EGT) (OTCQB: EGTYF) (“Eguana” or “company''), a leading developer and manufacturer of high-performance energy storage systems, announced the completion of a short-term financing arrangement to support short-term liquidity.
The Company entered into a short-term financing agreement to increase the Company's short-term working capital and provide bridging cash flow to previously announced proceeds from inventory returns (see news release dated February 7, 2024).stock returns”).
We provide short-term bridge loan financing (“bridge financeWe have raised approximately $220,000 in principal from certain lenders, including our Chief Executive Officer and members of our Board of Directors. A portion of the bridge financing will be received and repaid in U.S. dollars and a portion in Canadian dollars. The principal amount of the Bridge Financing and its accrued interest will become due and payable on April 30, 2024 (“Maturity date“). Interest accrues at the rate of 5% per month on the principal amount. The lender receives no other fees or charges. Bridge financing is unsecured. Proceeds from bridge financing are used for general working capital used as.
CEO Justin Holland said: “The bridge financing is important to enable us to continue operating our various businesses while we await funding from inventory returns, which is expected to occur in the second half of March. We also appreciate the confidence our Bridge Finance participants have placed in us.” We continue to execute his VPP deployment in line with our goals in Europe and Australia. ”
Certain bridge financings obtained from our Chief Executive Officer and Chairman of the Board constitute related party transactions under Multilateral Agreement 61-101. Protection of minority security holders in special transactions (“MI 61-101”). This transaction is neither a fair market value transaction nor a fair market value transaction and is subject to formal valuation and minority Exempted from shareholder approval requirements. The consideration paid to our related party bridge finance lenders will be in excess of 25% of our market capitalization.
In a new release on February 7, 2024, the company outlined that it is exploring potential alternatives to improve liquidity and increase shareholder value, but Eguana has no plans to manage short-term liquidity. As such, this is still ongoing. At this time, we cannot assure you what further alternatives we will pursue or whether this bridge financing will be sufficient to meet all short-term obligations. The Company does not intend to disclose further details regarding its consideration or actions taken until the Board of Directors approves the transaction or determines that further disclosure is warranted.
About Eguana Technologies Co., Ltd.
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 series of microinverter products integrated with energy storage platforms, providing consumers with complete solar + storage system architectures for residential and commercial applications. Eguana has 20 years of experience delivering grid-edge power electronics for fuel cell, solar, and battery applications, with proven, durable, high-quality We offer solutions for
Eguana has deployed thousands of unique energy storage inverters to the European and North American markets and is one of the leading suppliers of power control for solar self-consumption, grid services and demand charging applications at the grid edge. . Eguana focuses on distributed energy storage applications at the point of energy consumption, providing cost-effective solutions to modernize the power grid from consumers to electricity retailers, distribution utilities and system operators. .
For more information, please visit www.EguanaTech.com Or follow us on Twitter @EguanaTech
Inquiries regarding the company
Justin Holland, CEO
Eguana Technologies Co., Ltd.
+1.416.728.7635
Justin.Holland@EguanaTech.com
Forward-looking statements
The reader is cautioned that all information in this document, other than statements of historical fact, may constitute forward-looking statements and forward-looking information (collectively, “”). Masu).Forward-looking statements“) within the meaning assigned by National Instrument 51-102 – Continuous disclosure obligation and other relevant securities laws. Forward-looking statements include, among other things, our cash flow needs, inventory returns and use of bridge financing proceeds. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Many factors could cause our actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by forward-looking information. Such factors include, but are not limited to, risks associated with: our inability to improve our cash flow, which could have a material adverse effect on our ability to continue our business; Timely collection of accounts receivable. general economic, market and business conditions; competitive factors. Achieve strategic goals. unanticipated effects of workforce reductions; delays, if any, in our receipt of payment in connection with inventory returns; Unable to procure materials or procurement delayed. our failure to improve liquidity; and the “Risk Factors” section of our management's discussion and analysis for the three and nine months ended September 30, 2023, and as otherwise set forth in our Annual Information Form dated November 29, 2023. factors. .sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Except as required by applicable securities laws, we do not include any information contained herein to reflect events or circumstances occurring after the date of this document or to reflect the occurrence of unanticipated events. The Company undertakes no obligation to publicly release any revisions to any forward-looking statements made.
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..
