Eguana Technologies (TSXV: EGT) this morning announced that it is cleaning up its balance sheet. The company has forced the conversion of outstanding 10% unsecured convertible debentures that were issued in June and August of 2019.
The forced conversion will see a total of $1.943 million in face value of debentures converted to equity of the company. A further $2.284 million have already voluntary converted their debt position in the company to that of equity, which is currently in progress.
The ability to force the early conversion of the debt, which was to mature in 2022, follows the firm seeing its equity trade above $0.30 for twenty consecutive trading days on a volume weighted basis.
“Removing the liability associated with the convertible debentures is the first step towards strengthening our balance sheet and working capital position, and we anticipate having all debentures converted by early April. Eliminating over 9 million of debt will put the Company in a much stronger financial position going forward as we continue to execute our business plan.”Justin Holland, CEO of Eguana Tech
Additionally, the company has exercised its right to acquire all of the 1,150 Class F limited partnership units issued by EGT Markets Limited Partnership in November 2020, resulting in a further $1.15 million in debt being removed from the firms books.
Eguana Tech last traded at $0.50 on the TSX Venture.
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