Eguana Technologies Announces Proposed $2.5 Million Brokered Offering

CALGARY, ALBERTA--(Marketwired - Sept. 21, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Eguana Technologies Inc. ("Eguana" or the "Company") (TSX VENTURE:EGT)(OTCQB:EGTYF) today announced that it has entered into an engagement letter with Mackie Research Capital Corp. and Bayfront Capital Partners, Ltd. (collectively, the "Agents") in connection with a proposed "best efforts" private placement of up to 12,500,000 units (each a "Unit" and together, the "Units") of Eguana at a price of $0.20 per Unit for gross proceeds of up to $2.5 million. Each Unit will consist of one common share ("Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). The strike price of the Warrants will be at $0.25 and the term to expiry of the Warrants will be 24 months from the date of issuance thereof.

The Company has granted the Agents an option to raise an additional 20%, representing 2,500,000 Units, on the same terms. The Offering is expected to close on or about September 28, 2017, or such other date as agreed to by the Company and the Agents (the "Closing Date"). The Agents will be paid a cash commission of 7.5% of the gross proceeds of the Offering and will be granted compensation options entitling the Agents to purchase 7.5% of the number of Units sold under the Offering at an exercise price of $0.20 per Unit for a period of 24 months from the Closing Date. The securities issued pursuant to the Offering will be subject to a four month hold period.

The net proceeds of the Offering will be used for general working capital purposes.

Completion of the Offering is subject to certain conditions including, but not limited to, receipt of all necessary regulatory approvals including the approval of TSX Venture Exchange Inc.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.