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 Loan

The 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 common shares are subject to a maximum hold period under applicable securities laws of four months and one day from their date of issue. The vested unexercised Warrants will be exchangeable, at the option of the holder, after the earlier of a liquidity event for the Company and September 30, 2025, for an amount equal to the sum of: (i) US$1,500,000; and (ii) the product obtained by multiplying US$1,500,000 by the percentage of the principal amount of the Loan actually advanced by the Lender relative to US$10,000,000.

In connection with the Loan, the Company has granted the Lender the right to invest in future offerings of common shares of the Company, on the same terms and conditions offered to other subscribers, for up to the greater of: (i) US$250,000; and (ii) such amount as is required for the Lender to maintain its fully diluted pro rata ownership position in the Company.

About Western Technology Investment

Founded in 1980, Western Technology Investment (WTI) pioneered the concept of venture debt. The firm provides minimally-dilutive, truly usable capital to high-growth, public and private, technology and life science companies. For more information, please visit westerntech.com.

About Eguana Technologies Inc.

Based in Calgary, Alberta Canada, Eguana Technologies (TSXV: EGT) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. 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 Europe, Australia and North America.

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.

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
This email address is being protected from spambots. You need JavaScript enabled to view it.

Forward-Looking Statements

Certain information in this news release constitutes forward-looking statements and forward-looking information (collectively, the "forward-looking statements") within the meaning of Canadian securities laws, and is subject to numerous risks, uncertainties and assumptions, many of which are beyond the Company's control. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information, including the use of proceeds from the Loan, the timing of the first draw and near term revenue opportunities of the Company. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the Company's ability to engage and retain qualified key personnel, employees and affiliates, to obtain capital and credit and to protect its property rights.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

The forward-looking statements contained in this news release represent the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time.

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.