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

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

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

Eguana Technologies (TSXV: EGT) last night reported its third quarter financial results. The firm saw...

Tuesday, August 30, 2022, 08:26:29 AM

Eguana Reports Preliminary Calendar Q4 Revenue Of $10.3 Million

Eguana Technologies (TSXV: EGT) this morning was out with an update on its financial performance...

Tuesday, February 21, 2023, 08:03:43 AM

Eguana Tech: Stifel-GMP Initiates Coverage With $0.85 Price Target

Eguana Technologies (TSXV: EGT) has been given its first analyst recommendation. The first investment bank...

Thursday, March 18, 2021, 11:45:00 AM

Eguana Tech: $10M Quarter + What’s Coming For 2023 – with Justin Holland

Joining SmallCapSteve to start off the week is Justin Holland, CEO of Eguana Technologies (TSXV:...

Monday, March 13, 2023, 01:30:00 PM

Eguana Tech Sees Itochu Corp Convert $5.0 Million Debentures To Equity

Eguana Technologies (TSXV: EGT) has seen the removal of a significant portion of debt from...

Monday, April 19, 2021, 07:31:40 AM