Eguana Technologies (TSXV: EGT) this morning is reporting that one of its largest shareholders has increased its stake in the company. ITOCHU Corporation, a Japanese conglomerate, has increased its stake in the firm to just under 13%.
The increased stake follows ITOCHU electing to exercise 16.7 million common share purchase warrants issued in March 2020. The exercise will result in Eguana bringing in an additional $3.3 million in cash to company coffers.
Separately, ITOCHU has agreed to accept payment of the $1.1 million owed in interest on Eguana’s 7% unsecured convertible debenture in the form of common shares of the company. As a result, 4.2 million shares of Eguana were issued to settle the debt at a price of $0.27 per share.
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“The exercise of the Warrants, along with the interest conversion, further demonstrates ITOCHU’s confidence in our partnership and expansion plans. We currently have multiple ongoing objectives with ITOCHU including near and long term battery supply, homebuilder, and virtual power plant,” commented Eguana CEO Justin Holland.
Following the transactions, ITOCHU holds 54.9 million shares in Eguana, equating to a 12.95% interest in the company. Prior to the transaction, the company held an 8.44% stake.
Eguana Tech last traded at $0.245 on the TSX Venture.
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