Eguana retains $33M investment from ITOCHU
by CM Staff
Eguana explained that it will use the new loan to fund working capital and general corporate expenditures of the company.
CALGARY — The ITOCHU Corporation has given Eguana Technologies Inc. an unsecured convertible debenture for the amount of $33 million.
As explained in an announcement from Eguana, the terms of the agreement say that the unsecured debenture is convertible into common shares of the company at conversion price of $0.50 per share.
Eguana anticipates that immediate access to working capital will enable the company to pursue its business growth objectives at the global level.
“ITOCHU, a key partner of Eguana for many years, remains at the global forefront of the renewable energy transition with expertise and access throughout the entire renewables supply chain,” said Eguana CEO Justin Holland in a statement.
“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.”
Eguana also explained that it will use the new loan to fund working capital and general corporate expenditures of the company. The financing is subject to other customary conditions and applicable regulatory approvals, including approval by the TSX Venture Exchange.
Eguana has also chosen to complete its second tranche draw with lending partner Western Technology Investment, pursuant to a loan agreement amongst Eguana Inc., EGT Markets Limited Partnership, Venture Lending & Leasing IX, Inc. and WTI Fund X, Inc. The lenders have reportedly waived the financial milestones required under the loan agreement.
The company says it expects WTI will make the remaining US $5 million under the second tranche available to the company on the closing date set out in the terms of the agreement.
“The rapid interest and uptake of storage and micro inverters is expected to accelerate our growth and will be supported by the additional capital from WTI. This additional capital will immediately augment procurement for micro inverters and strengthen our inventory position in North America,” said Holland in a statement.