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Eguana announces conversion of $2.5 million debentures and



CALGARY, Alta., Feb. 19 2021 (GLOBE NEWSWIRE) — Eguana Technologies Inc. (“Eguana“or the”Society”) (TSX.V: EGT) (OTCQB: EGTYF) announces that it has elected to exercise its right (the “Compulsory conversion right“) under the convertible debenture certificates (the “Debenture Certificates”), which govern all of the Company’s 10.0% unsecured convertible debentures issued in connection with the completion of the Company’s private placements on June 21, 2019 and August 8, 2019 (the “Debentures“), to convert (the “Conversion”) all of the outstanding principal amount of the remaining Debentures as of March 22, 2021 (the “Conversion date”) in ordinary shares of the capital of the Company (the “Ordinary actions”).

Pursuant to the terms of the debenture certificates, the Company may force the conversion of the debentures at a conversion price of $0.15 per common share when the volume weighted average trading price (“VWAP”) of common shares listed on the TSX Venture Exchange (the “TSXV”) for 20 consecutive trading days exceeds $0.30.

As of the close of trading on February 18, 2021, the VWAP of common shares listed on the TSXV exceeded $0.30 for a period of 20 consecutive trading days. Following the conversion, the estimated remaining aggregate of approximately $1.943 million (par value) of the outstanding Debentures will be converted into approximately 12,953,339 Common Shares, and accrued interest (less any required deduction or withholding) (the “Increased interest”) will be paid by the Company in cash or by the issue of Common Shares to the applicable holders of the Debentures.

Holders of Debentures may voluntarily convert their Debentures in accordance with the terms of their Debenture certificates prior to the Conversion Date. As of the date hereof, holders of Debentures in the amount of $2.284 million have voluntarily converted their Debentures into Common Shares, some of which have entered into debt settlement agreements (the “Debt settlement agreements”) with the Company (collectively, the “Election of incumbents”), pursuant to which the Company will pay $57,613 of accrued interest by issuing an aggregate of 115,218 common shares in the capital of the Company (collectively, the “Accrued interest shares”) to electing holders at a deemed price of $0.50 per share. The debt settlement agreements and the issuance of accrued shares to elective holders are subject to the approval of the TSXV. Accrued Interest Shares will be subject to the statutory hold period of four months and one day from the date of issue.

“Removing the liability associated with the convertible debentures is the first step toward strengthening our balance sheet and working capital, and we expect all debentures to be converted by early April,” Eguana CEO commented. Justin Holland. “The elimination of over $9 million in debt will put the company in a much stronger financial position going forward as we continue to execute on our business plan.”

As certain debentureholders are directors of the Company, the foregoing constitutes a related party transaction under Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101This transaction is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of NI 61-101 since neither the fair value of the securities issued, nor the consideration offered therefore exceeds 25% of the market capitalization of the Company.

Conversion of Class F Limited Partnership Units

In addition, the Company announces that it has exercised its previously announced right to acquire all 1,150 Class F LP Units (the “Units”) in EGT Markets Limited Partnership, a subsidiary of the Company, issued on November 2, 2020 in exchange for 7,665,900 ordinary shares in the capital of Eguana (the “LP Common Stock”). Please see Eguana’s press release dated November 2, 2020 for more details regarding the unit issuance. The common shares of LP issued in exchange for the units are subject to resale restrictions which expire on March 3, 2021.

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 supplying grid edge power electronics for fuel cell, photovoltaic and battery applications, and provides proven, durable and high quality solutions from its manufacturing facilities. large capacity in Europe, North America and Australia.

With thousands of its proprietary energy storage inverters deployed in the European and North American markets, Eguana is a leading provider of power controls for solar self-consumption, grid services and off-grid charging applications. demand at the network edge.

To learn more, visit www.EguanaTech.com or follow us on Twitter @EguanaTech

Forward-looking statements
Certain information contained in this press release constitutes forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of Canadian securities laws, and is subject to numerous risks, uncertainties and assumptions, many of which are beyond the Company’s control. This forward-looking information includes, among other things, information regarding: the Debentures and the Conversion and their expected effects; the balance sheet of the Company; the Company’s plans and financial condition; Approval by TSXV of settlement of debt and outstanding debentures. Agreements and issuance of Accrued Shares to Voting Holders. The words “may”, “could”, “should”, “would”, “suspect”, “prospect”, “believe”, “anticipate”, “estimate”, “expect”, “intend of”, “plans”, “target” and similar words and phrases are used to identify forward-looking information. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Important factors that could cause actual results or events to differ materially from such forward-looking information include, among others: the value of the aggregate Debentures outstanding at the date of conversion; the number of ordinary shares issued by the Company following the conversion; the Company’s balance sheet may not be strengthened and the Company may not be in a better financial position following the Conversion; the Company may not convert the remaining debentures by April 2021; the TSXV may not approve debt settlement agreements and the issuance of accrued shares to elective holders; the Company cannot force the conversion of the outstanding debentures into common shares and the uncertainty surrounding the spread of COVID-19 and the impact it will have on the operations and economic activity of the Company generally, as well that the risks and uncertainties discussed in our most recent annual and quarterly reports filed with Canadian securities regulators and available on the Company’s profile on SEDAR at www.sedar.com, which risks and uncertainties are incorporated herein by reference. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, the Company does not intend and assumes no obligation to update forward-looking statements to reflect, in particular, new information or future events. The Company cautions that the foregoing list of important factors is not exhaustive. When relying on the Company’s forward-looking information to make decisions, investors and others should carefully consider the foregoing factors as well as other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the important factors referred to in the preceding paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of such factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

The forward-looking statements contained in this press release represent the Company’s expectations as of the date of this press release and, accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely on such information as of any other date. Although the Company may choose to do so, it does not undertake to update this information at any given time.

This press release does not constitute an offer to sell or a solicitation of an offer to buy 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 “United States Securities Act”) or any state securities law and may not be offered or sold in the United States unless registered under United States law. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.