Eguana Technologies (TSXV: EGT) this evening announced that it has closed its previously announced brokered private placement. Previously set to raise $1.0 million in gross proceeds, the offering was oversubscribed with a total of $1.15 million raised for the company.
Funding from the financing, which was conducted in the firms subsidiary EGT Markets Limited Partnership, will go towards product development and general working capital purposes. The company concurrently announced that it is in the process of developing a 10kW / 28 kWh Evolve whole home battery back-up product offering, with which it anticipates to be first to market in California in terms of a cobalt-free, fully integrated, whole home back-up solution.
The expansion into whole home back-up offerings comes at a time that the home battery market is quickly expanding. Following rolling blackouts in the nations most populous state, homeowners are looking for solutions that provide clean, reliable power based around specific preferences to suit their needs. With Eguana capable of quickly designing, developing, certifying and manufacturing products that fit these specifications, they’ve found themselves in a very positive position.
With the financing being conducted in a subsidiary of Eguana, the company retains the right to exchange the units for common shares of Eguana at $0.15 per share. Each unit, priced at $1,000 each, is exchangeable for 6,666 common shares of the issuer at any point after December 31. The conversion must occur however before March 31, 2020.
Eguana Technologies last traded at $0.14 on the TSX Venture.
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