Calgary, Alberta--(Newsfile Corp. - April 15, 2024) - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) ("Eguana" or the "Company"), a leading developer and manufacturer of high-performance energy storage systems, provides updates on previously released financial announcements, with respect to short-term liquidity and the Company's virtual power plant ("VPP") strategy.

The Company previously outlined various steps to manage liquidity, including the return of inventory, working with long-term debt holders, and negotiating with its major USA for inventory setoffs, future credits, a defined payment schedule and formal security.

With respect to the inventory return, outlined in news releases dated February 7, 2024 and February 14, 2024, (the "Inventory Return"), the Company received wire confirmation for the first transfer of inventory on March 29, 2024 and funds totaling $2.3 million USD have since been received. Additional funds of approximately $587 thousand USD, related to a follow-on shipment, are expected by the end of April 2024.

The Company continues to work closely with its senior long-term debt holder and has negotiated various near term debt amendments, as well as an amendment with its subordinated debenture holder, which were outlined in prior news releases. The Company can confirm that further negotiations with the senior long-term debt holder remain ongoing. In addition to deferred payments, outlined in the news release dated February 7, 2024, the Company has further deferred the principal and interest payment due on April 1, 2024. As part of the negotiations, a payment in the amount of approximately $638 thousand USD was made on April 2, 2024, which represented the outstanding principal amounts due for the December 1, 2023 and January 1, 2024, payments. The Company will provide additional details as further amendments are agreed to between the parties.

"We have begun rolling out utility feeder line optimization programs, for utilities in Canada and the United States, as part of our VPP strategy, to demonstrate Eguana's hardware, software, and fleet aggregation solutions. Our long-term debt partner continues to be supportive of our strategic and operational initiatives, as we navigate a slower than expected retail marketplace for residential solar and storage solutions," commented Eguana, CEO Justin Holland.

The Company secured a short-term unsecured bridge loan financing from accredited lenders, outlined in a news release dated March 8, 2024 (the "Bridge Financing"), in the principal amount of approximately $220,000. A portion of the Bridge Financing was received in US dollars and a portion in Canadian dollars and will be repayable in the respective currencies. Interest accrues on the principal amount at a rate of 5% per month. The principal amount of the Bridge Financing, together with interest accrued thereon, is repayable on April 30, 2024, and the Company anticipates repaying the Bridge Financing at that time.

With respect to the Company's major customer receivable and related collections, the agreed collaboration steps, including the fixed payment schedule and the security agreement, are under continual review. The Company anticipated these cash receipts would support short-term liquidity, however, the customer has experienced additional delays, creating uncertainty around the timing of further collections. The Company will continue to work closely with the customer on solutions, and Eguana will remain cautious in the short term about the impacts to near and medium-term cash flows.

In an effort to accelerate the Company's VPP strategy, Eguana accepted finished goods inventory from its major customer, as an offset to accounts receivable and is currently in the process of rolling out multiple VPP pilot programs with utilities in Canada and the United States. The inventory is planned for aggregation on utilities feeder lines, to maximize grid efficiency, manage end-of-line voltage control, and perform demand response functions.

"With the full team returned from furlough, we are advancing Eguana Cloud and consumer app development, to align with our utility pilot programs in the USA and Canada" Holland added. "Pilot programs for both end-of-line voltage control and demand response are currently rolling out in Western Canada and the US Northwest, to go along with additional demand response and distressed feeder pilot programs, in Eastern Canada and targeted USA utility companies. We believe Eguana's fleet management software platform, fully integrated with our advanced power controls, are uniquely suited to the demanding requirements of our utility customers and are key to unlocking the full value of distributed energy storage."

About Eguana Technologies Inc.

Eguana Technologies Inc. (EGT: TSX.V) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. The Company also markets and sells a suite of micro inverter products, which are integrated with its energy storage platform providing consumers with full solar + storage system architecture, for residential and commercial applications. 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 North America, Europe, and Australia.

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. Focused on distributed energy storage applications located at the point of energy consumption, Eguana provides cost-effective solutions to modernize the power grid, from the consumer to the electricity retailer, the distribution utility, and the system operator.

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
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Forward-Looking Statements

The reader is advised that all information herein, other than statements of historical fact, may constitute forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning assigned by National Instrument 51-102 - Continuous Disclosure Obligations and other relevant securities legislation. In particular, forward-looking statements include, among other things, the Company's cash flow needs, the Inventory Return and expected receipt of funds in connection therewith, the use of proceeds of the Bridge Financing, the anticipated repayment of the Bridge Financing and the anticipated effects of the integration of Eguana's fleet management software platform with its advanced power controls. Forward-looking statements are not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Such factors include, but are not limited to, risks associated with: failure by the Company to improve cash flow which would have a material adverse impact on the viability of the business to continue operating; timely collection of accounts receivable; general economic, market and business conditions; competitive factors; achieving strategic objectives; unanticipated effects of the reduction to headcount; delays to the Company's receipt of payment associated with the Inventory Return, if at all; inability to or delays in sourcing materials; failure by the Company to improve liquidity; failure by the Company to repay the Bridge Financing on time or at all; and other factors set out in the "Risk Factors" section of the Company's management's discussion and analysis for the three and nine months ended September 30, 2023 and annual information form dated November 29, 2023, which may be found on its website or at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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