Eguana Announces ITOCHU’s Conversion of Approximately $1.164 Million of Interest into Common Shares

CALGARY, Alberta, Sept. 28, 2023 (GLOBE NEWSWIRE) -- Eguana Technologies Inc. ("Eguana" or the "Company") (TSXV: EGT) (OTCQB:EGTYF) is pleased to announce that ITOCHU Corporation (“ITOCHU”), a strategic investor in the Company, and Eguana have agreed to convert $1,164,493.14 of interest owing under the Company’s 7% unsecured convertible debenture (“Convertible Debenture”) into 13,580,094 common shares of Eguana (“Common Shares”) in full satisfaction of the interest payment due on September 1, 2023 (the ”Payment”).

“Aligned with the Eguana vision, ITOCHU continues to be a valuable strategic investor and partner. The election of interest in the form of shares demonstrates their confidence in our partnership and the growth opportunities, as the power grid modernizes,” commented Eguana CEO Justin Holland. “The virtual power plant (VPP) market is evolving quickly, where we maintain a competitive technology advantage for utility companies. To execute these VPP opportunities, along with near-term opportunities in our three key markets, Eguana truly values the continued support from ITOCHU.”

In connection with the interest conversion, Eguana will issue 13,580,094 Common Shares at a deemed price of $0.08575 per share on September 28, 2023. All of the Common Shares will be subject to a four-month and one-day hold period in accordance with applicable Canadian securities laws. The Conversion remains subject to final approval by the TSX Venture Exchange (the “TSXV”). Additional details regarding the Convertible Debenture issued on August 31, 2022, can be found in the Company’s news releases dated August 26 and August 31, 2022, all of which are available on the Company’s profile on SEDAR+ at www.sedarplus.ca.

As a result of ITOCHU’s status as an insider of the Company, the foregoing interest conversion constitutes a related-party transaction 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 securities issued, nor the consideration provided therefore exceed 25% of the Company’s market capitalization.