Business
Eguana Enters into a US$10 Million Loan Agreement with Western Technology Investment
Calgary, Alberta--(Newsfile Corp. - April 4, 2022) - Eguana Technologies Inc. (TSXV: EGT)...
About this update from Eguana Technologies Inc
[{"type":"text","content":"Eguana Enters into a US$10 Million Loan Agreement with Western Technology InvestmentCalgary, Alberta--(Newsfile Corp. - April 4, 2022) - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) (the \"Company\" or \"Eguana\") is pleased to announce that it has entered into a loan agreement for general working capital for up to US$10,000,000 (the \"Loan\") on April 1, 2022, with Silicon Valley based Western Technology Investment (the \"Lender\").\"We have expedited full turnkey manufacturing and supply chain activities to Omega EMS and this growth capital will be immediately utilized to support further production capacity increases, Enfuse launch volumes, and battery module supply,\" commented Eguana CEO, Justin Holland. \"WTI has remained a key partner for Eguana for a number of years, recognizing the strategic market position the team has put in place and the near term revenue opportunities with both the storage solutions and the micro inverter launch.\"Details of the LoanThe Loan has first priority over all assets of the Company and its material subsidiaries. During the week of April 4, 2022, the Company intends to draw US$5,000,000 under the terms of the Loan. An additional US$5,000,000 is available through August 31, 2022, upon the Company achieving revenue of at least C$14,000,000 between May 1, 2022 and July 31, 2022, and the Company having unrestricted cash of C$10,000,000 at the time of the draw. Each draw will bear interest at a rate of 12% per annum, with interest-only payments being paid during the first six months, followed by both principal and interest payments being paid in equal installments over a period of 30 months commencing on the 6-month anniversary of the relevant draw. The Company may prepay the Loan by paying all scheduled but unpaid payments, subject to a scaling discount off future interest owed depending the date of repayment. As consideration for the advance of the Loan, the Company has issued common share purchase warrants (the \"Warrants\"), entitling the Lender to purchase up to an aggregate of up to 4,934,309 common shares of the Company at a price of $0.355 per common share for a period of five (5) years from the date of the Loan, with 50% of the Warrants immediately vesting and 50% of the Warrants vesting rateably on subsequent draws made under the Loan. The Warrants and the underlying com...