Eguana Technologies Closes $20 Million Private Placement of Special Warrants

Source: · NEWSWIRE · | February 25, 2021

CALGARY, AB, Feb. 25, 2021 /CNW/ - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) ("Eguana" or the "Company") is pleased to announce that it has completed its previously announced private placement of special warrants of the Company (the "Special Warrants") for aggregate gross proceeds of $20,000,000 (the "Offering"). Pursuant to the Offering, the Company issued 50,000,000 Special Warrants at a price of $0.40 per Special Warrant. Each Special Warrant is exercisable into one common share in the capital of the Company (each, a "Common Share" and collectively, the "Common Shares") without payment of any additional consideration upon certain conditions being met.

The Offering was led by Stifel GMP and Cormark Securities Inc., as co-lead and joint bookrunners, together with Mackie Research Capital Corporation (the "Agents"). In addition, and in connection with the Offering, Fort Capital Partners acted as a capital markets advisor to the Company.

The Special Warrants were created and issued pursuant to, and are governed by the terms of a special warrant indenture between the Company and TSX Trust Company, and will be transferable and exercised in accordance with the terms and conditions of the special warrant indenture.

In addition to strengthening its balance sheet, the Company plans to use net proceeds of the Offering to accelerate cost reduction activities, to accelerate research and development of its battery technology, to expand its development and lab testing capabilities, and to strategically position inventory for the transition from batch manufacturing to flow manufacturing, enabling consistent product availability.