Eguana Tech Closes On $38.0 Million In Funding

Eguana Technologies (TSXV: EGT) now has significant money in the bank. The firm announced late last night that it has closed on multiple funding initiatives that were recently announced by the company.

The firm has closed on the significant $33.0 million investment by ITOCHU Corporation, which comes in the form of an unsecured convertible debenture. At the time of announcement, the financing and conversion price of $0.50 on the debt represented a 22% premium to the market price of the company. The debt bears interest at 7% per annum, and has a maturity of three years.

Along with the strategic investment by ITOCHU, the company has closed on an additional $5.0 million from Western Technology Investment, representing the second tranche of funding from the firm. Notably, WTI waived certain financial milestones previously required to access the funding, suggesting their confidence in the company.

READ: Eguana Tech Reports Q3 Revenues Of $2.3 Million, Highlights $27 Million Order Backlog

Proceeds from the financings are to be used for working capital and general corporate purposes, as previously outlined by Eguana. “Growth capital of this magnitude will allow us to accelerate key inventory investments across all product lines and expedite Eguana Cloud and battery module/battery management system development,” said CEO Justin Holland at the time of the announcement of the ITOCHU transaction.

Eguana Tech last traded at $0.365 on the TSX Venture.


FULL DISCLOSURE: Eguana Technologies is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Eguana Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Eguana Launches Cobalt-Free Home Battery System

This morning Eguana Technologies (TSX.V: EGT) announced they have expanded their Evolve residential product line...

Tuesday, July 21, 2020, 10:01:09 AM

Stifel: “A Lot Continues To Go Right For Eguana”

On March 1st, Eguana Tech (TSXV: EGT) reported its first fiscal quarter of 2022. The...

Saturday, March 5, 2022, 05:10:00 PM

Eguana Tech Forces Conversion Of Debentures, Cleans Up Balance Sheet

Eguana Technologies (TSXV: EGT) this morning announced that it is cleaning up its balance sheet....

Friday, February 19, 2021, 09:17:38 AM

Eguana Tech Readies For First Production Of 10kW Evolve Battery Pack

Eguana Technologies (TSXV: EGT) continues to forge ahead with the development of its Evolve energy...

Wednesday, May 12, 2021, 07:30:22 AM

Eguana Sees Largest Shareholder Convert Series A Shares To Common Ahead Of Schedule

Eguana Technologies (TSXV: EGT) appears to be cleaning up its share structure. The firm this...

Friday, December 17, 2021, 02:03:51 PM