Eguana Announces Debt Settlement Agreement With ITOCHU Corporation and Closing of Shares for Debt Transactions

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CALGARY, Alberta, March 16, 2021 (GLOBE NEWSWIRE) -- Eguana Technologies Inc. (“Eguana” or the “Company”) (TSX.V: EGT) (OTCQB: EGTYF) announces that it has entered into a shares for debt agreement (the “Agreement”) with ITOCHU Corporation (“ITOCHU”). Under the terms of the Agreement, dated March 15, 2021, the Company and ITOCHU agreed to settle C$247,945.20 of debt (the “Debt”) through the issuance of 590,345 common shares in the capital of the Company (“Common Shares”) at a deemed price of C$0.42 per share. The Debt arose pursuant to the terms of a convertible debenture certificate issued in connection with a private placement which closed on March 13, 2020.

The Agreement and the issuance of the Common Shares issuable thereunder are subject to the approval of the TSX Venture Exchange (“TSXV”). The Common Shares will be subject to a statutory hold period of four months and one day.

Closing of Shares for Debt Transactions

The Company also announces that it has received the approval of the TSXV for its previously announced shares for debt transactions to settle an aggregate of $57,912.60 in indebtedness to certain creditors of the Company (the “Creditors”), through the issuance of 115,818 common shares in the capital of the Company (“Shares”) at a deemed price of $0.50 per Share (the “Debt Settlements”). The Shares are subject to a statutory hold period of four months and a day.

Certain directors and officers of the Company are among the Creditors, as such, a number of the Debt Settlements are considered to be a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on an exemption from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the Shares issued under the Debt Settlements does not exceed 25% of the market capitalization of the Company.

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 and Australia.