Calgary, Alberta--(Newsfile Corp. - February 14, 2024) - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) ("Eguana" or the "Company"), a leading developer and manufacturer of high-performance energy storage systems, announces an update to its press release dated February 7, 2024.
Eguana continues to actively manage its liquidity, as a result of the overall solar energy sector's underperformance. Decreased consumer spending related to inflation, high-interest rates, and increased dealer fees has restrained and delayed market recovery in the industry.
The Company has already negotiated various debt amendments to reduce near term cash flow requirements and completed a private placement in December 2023. Further, the collaboration agreements with our key customer, which provided a fixed payment schedule, were expected to provide near and medium-term liquidity. However, the Company has learned that the key customer is experiencing the same industry pressures as Eguana, including a liquidity shortfall. As a result, delays and/or shortfalls on the fixed payment schedule have occurred and are anticipated to continue to occur.
In light of the Company's financial position, the Board of Directors of the Company is exploring potential alternatives to improve liquidity and enhance shareholder value. The Company is currently negotiating an option, with an existing lender, which would provide short-term funding, through to the large receivable previously disclosed on February 7, 2024 that the Company expects to be collected in March. Other alternatives may include, but not be limited to, further rationalization of the business and strategy, strategic investments in the Company by third parties, or some combination thereof. These alternatives are critical for the Company to manage near and medium-term liquidity, and to meet its financial obligations.
"Weak markets, coupled with slow collections from the key customer and high debt service, compel us to take further action to adapt to current conditions and to help ensure Eguana can move forward and execute operational objectives," said Justin Holland, CEO. "In the meantime, we remain focused on advancing relationships in the virtual power plant space and delivering on our mission to connect homeowners and utilities for a seamless experience through the distributed grid transition."
At present, there can be no assurance as to what, if any, alternatives might be pursued by the Company. The Company does not intend to disclose further details with respect to its review or actions taken, unless and until the Board of Directors has approved a transaction or otherwise determines that further disclosure is warranted.
About Eguana Technologies Inc.
Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. The Company also markets and sells a suite of micro inverter products, which are integrated with its energy storage platform providing consumers with full solar + storage system architecture, for residential and commercial applications. Eguana has two decades of experience delivering grid edge power electronics for fuel cell, photovoltaic and battery applications, and delivers proven, durable, high-quality solutions from its high-capacity manufacturing facilities in North America, Europe, and Australia.
With thousands of its proprietary energy storage inverters deployed in the European and North American markets, Eguana is one of the leading suppliers of power controls for solar self-consumption, grid services and demand charge applications, at the grid edge. Focused on distributed energy storage applications located at the point of energy consumption, Eguana provides cost-effective solutions to modernize the power grid, from the consumer to the electricity retailer, the distribution utility, and the system operator.
To learn more, visit www.EguanaTech.com or follow us on Twitter @EguanaTech
Company Inquiries
Justin Holland, CEO
Eguana Technologies Inc.
+1.416.728.7635
Justin.Holland@EguanaTech.com
Forward-Looking Statements
The reader is advised that all information herein, other than statements of historical fact, may constitute forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning assigned by National Instrument 51-102 - Continuous Disclosure Obligations and other relevant securities legislation. In particular, forward-looking statements include, among other things, statements regarding, anticipated payments from the company's key customer, the Company's cash flow needs, any anticipated market recovery, the Company's ability to negotiate a short-term funding with an existing lender, and the Company's business operations, cash flow constraints, liquidity impacts, accounts receivable collections, and strategy. Forward-looking statements are not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks associated with: failure by the Company to improve cash flow which would have a material adverse impact on the viability of the business to continue operating; timely collection of accounts receivable; effective implementation and deployment of Eguana solutions and building additional partnerships and developing existing partnerships; general economic, market and business conditions; competitive factors; achieving strategic objectives; unanticipated effects of the reduction to headcount; delays to the Company's receipt of payment associated with the inventory return, if at all; inability to or delays in sourcing materials; the Company's ability to roll out utility pilot programs and advance relationships in the virtual power plant space; the adoption of energy storage technologies may be slower than anticipated; failure by the Company to improve liquidity, enter into a funding arrangement with an existing lender, effectively rationalize the business and strategy or to obtain a strategic investment and other factors set out in the "Risk Factors" section of the Company's management's discussion and analysis for the three and nine months ended September 30, 2023 and annual information form dated November 29, 2023, which may be found on its website or at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/197957
SOURCE: Eguana Technologies Inc.
