Eguana Technologies Inc., Calgary, Canada, (TSXV: EGT) (OTCQB: EGTYF) has completed its previously announced private placement of special warrants of the Company for aggregate gross proceeds of $20,000,000 (the “Offering”). Pursuant to the Offering, the Company issued 50,000,000 Special Warrants at a price of $0.40 per Special Warrant. Each Special Warrant is exercisable into one common share in the capital of the Company without payment of any additional consideration upon certain conditions being met.
The Offering was led by Stifel GMP and Cormark Securities Inc., as co-lead and joint bookrunners, together with Mackie Research Capital Corporation (the “Agents”). In addition, and in connection with the Offering, Fort Capital Partners acted as a capital markets advisor to the Company.
The Special Warrants were created and issued pursuant to, and are governed by the terms of a special warrant indenture between the Company and TSX Trust Company, and will be transferable and exercised in accordance with the terms and conditions of the special warrant indenture.
In addition to strengthening its balance sheet, the Company plans to use net proceeds of the Offering to accelerate cost reduction activities, to accelerate research and development of its battery technology, to expand its development and lab testing capabilities, and to strategically position inventory for the transition from batch manufacturing to flow manufacturing, enabling consistent product availability.
“I’m very proud of our team, who have worked tirelessly over the past few years, to position Eguana with a feature rich suite of products and fantastic partners in key areas including manufacturing, installation, and supply,” commented Eguana CEO Justin Holland. “We are also encouraged by the institutional support and will put this growth capital to good use by immediately accelerating our supply chain activities to bring additional predictability to our revenue streams by reducing the impact of COVID-19 driven logistics disruption. We will also accelerate the vertical integration of our battery supply chain giving the Company increased flexibility and advantage with new and emerging battery chemistries.”
As consideration for its services in connection with the Offering, the Company paid the Agents a cash commission equal to $1,400,000 and issued to the Agents a total of 3,500,000 non-transferable compensation special warrants of the Company (each, a “Compensation Special Warrant”).
Certain directors and officers of the Company participated in the Offering. As a result, the foregoing constitutes a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).
About Eguana Technologies Inc.
Based in Calgary, Alberta Canada, Eguana Technologies (EGT: TSX.V) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. 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 Europe and North America.
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.
