Business
Eguana Announces Change in Auditor and Provides Financial Update
Calgary, Alberta--(Newsfile Corp. - August 12, 2024) - Eguana Technologies Inc. (TSXV: EGT) (OT...
About this update from Eguana Technologies Inc
[{"type":"text","content":"Eguana Announces Change in Auditor and Provides Financial UpdateCalgary, Alberta--(Newsfile Corp. - August 12, 2024) - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) (\"Eguana\" or the \"Company\"), a leading provider of high-performance energy storage systems, announces a change in auditor and provides a financial update. Change of AuditorThe Company has changed its auditor from KPMG LLP (\"Former Auditor\") to MNP LLP (\"Successor Auditor\") effective August 9, 2024.At the request of the Company, the Former Auditor resigned as the auditor of the Company and the Board of Directors of the Company appointed the Successor Auditor, as the new auditor of the Company as of the Effective Date, until the close of the Company's next annual meeting of shareholders. The next annual and special general meeting is scheduled for September 26, 2024.There were no reservations in the Former Auditor's audit reports for any financial period during which the Former Auditor was the Company's auditor. There are no \"reportable events\" (as the term is defined in National Instrument 51-102 - Continuous Disclosure Obligations) between the Company and the Former Auditor. In accordance with National Instrument 51-102, the Notice of Change of Auditor, together with the required letters from the Former Auditor and the Successor Auditor, have been reviewed by the Company's audit committee and board of directors and will be filed on SEDAR+ accordingly.Financial UpdateThe Company has provided periodic updates on its liquidity position throughout 2024. The Company's cash position remains constricted in the near and medium term, despite efforts to manage liquidity. As outlined in prior updates, the Company's major USA customer continues to miss committed payments, which has decreased Eguana's short-term liquidity; however, the customer has recently increased sales and commenced weekly payments, albeit slightly lower than the original agreed to amount. The decreased short-term liquidity has had a follow-on effect of delaying payments to Eguana's senior long-term debt holder. As previously disclosed, the Company negotiated deferrals and reductions to the loan amortization payment amounts, up to and including June 1, 2024. However, in July 2024, the negotiated agreed to payment was expected to be interest only and Eguana has not made this payment, which may ...