Eguana Technologies Inc., Calgary, Canada, (TSX.V: EGT) (OTCQB: EGTYF) has upsized and closed its previously announced brokered private placement (the “Offering”) of 1,150 limited partnership units (the “LP Units”) of the Company’s subsidiary, EGT Markets Limited Partnership, for gross proceeds of $1.15 million, to be used for product development and general working capital purposes. Fort Capital Securities Ltd. acted as the sole lead agent in connection with the Offering.
The home battery market is quickly expanding as increasing amounts of residential PV installations include home batteries. Specific customer preferences are also emerging and Eguana is able to rapidly design, develop, certify and manufacture products tailored to a range of homeowner needs. Initial feedback from dealer networks has been very positive and the Company expects to be the first to market in California with a fully integrated, cobalt-free, whole home back-up solution. The 10kW/28kWh Eguana Evolve will provide clean, reliable power, giving homeowners energy security from affordable and renewable energy and peace of mind that their power will always be on.
These larger systems augment the performance of Virtual Power Plants as with reduced overhead costs and improved capacity availability VPPs can bid more competitively into a wider range of services. “Our continued work with various partners will help our customers contribute to modernizing the grid, reducing the occurrence of rolling blackouts and paving the way for electric vehicle and renewable energy growth”, says the company.
Eguana retains the right to exchange each of the LP Units for common shares in the capital of the Company, at a price of $0.15 per Common Share for an aggregate of 6,666 Common Shares per LP Unit, at any time after December 31, 2020, but prior to the close of business on March 31, 2021.
Holders of the LP Units are deemed to have made a capital contribution to the Partnership, thereby becoming limited partners of the Partnership and may be entitled to certain tax elections as holders of the LP Units. The Holders of the LP Units are also entitled to receive distributions of the Partnership, as determined by the general partner of the Partnership from time to time.
The LP Units are subject to a hold period of four months plus one day from the later of: (i) the date of issuance and (ii) the date on which the Partnership becomes a reporting issuer in any province or territory in Canada. The Broker Warrants (as defined below) and the Common Shares issuable upon exchange of the LP Units or on exercise of the Broker Warrants are subject to a hold period or four months plus one day from the closing date, in accordance with applicable securities legislation. In connection with the Offering, the Company paid the Agent a cash commission of $86,250 and issued the Agent 574,942 broker warrants. The Offering remains subject to the final approval of the TSX Venture Exchange (the “TSXV”).
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.
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.