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.
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