Eguana Arranges Short-Term Financing

CALGARY, Alberta, March 08, 2024 (GLOBE NEWSWIRE) -- 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.