Calgary, Alberta--(Newsfile Corp. - November 23, 2023) - Eguana Technologies Inc. (TSXV: EGT) (OTCQB: EGTYF) ("Eguana" or the "Company"), a leading developer and manufacturer of high-performance energy storage systems, is pleased to provide a business update and announce its intention to complete a non-brokered private placement offering.

Business Update

The Company continues its positive progress pursuing utility and distributed energy resource management ("DERs") partnerships, bringing the Company's participation in VPPs to seven across North America and Australia. The Eguana solution is positioned to work with distributed energy resource provider platforms that are fully integrated with the Eguana Cloud Platform, and Eguana's existing product line of energy storage solutions ("ESS"). The Eguana energy storage platform has been developed to support all grid related VPP functions.

The Company believes the near-term outlook for the energy storage industry is positive, as utility engagement continues to increase within the electricity sector, with a drive for utilities to roll out VPPs in support of grid modernization. To take the next step in the VPP sector, the Company has announced a multi-year Virtual Power Plant (VPP) Referral and Promotion partnership with a long-time major utility partner in Australia, which will be driven through direct and multi-media marketing. Further, the Company anticipates additional VPP announcements in the coming quarters.

Alongside VPP partnerships, Eguana's installer training, through Eguana university, continues to exceed expectations, with over 1,200 enrollments year to date, representing more than 200 installation companies. Trained installers are key to the consumer interface and experience, through both distribution and VPP channels.

"Partnerships, which include signed agreements, provide rapid access to sales channels, where the utility or finance companies already have existing customer bases and are in position to finance or incentivize energy storage solutions for their base," commented Justin Holland, Eguana CEO. "A perfect example is our recently announced FinanzDesk partnership in Europe where initial ESS units will be offered to current customers, under lease agreements, starting in December. By removing the upfront cost for the consumer, the sales process becomes simplified within the channel."

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Private Placement

The Company intends to complete a non-brokered private placement offering of up to 50,000,000 units of the Company (the "Units" or "Unit") at a price of $0.04 per Unit, for aggregate gross proceeds of up to $2.0 million. The Company has the option, in its sole discretion, to increase the size of the offering to up to $2.5 million (the "Offering").

Each Unit shall be comprised of one common share (each a "Common Share" and collectively, the "Common Shares") and one common share purchase warrant (the "Warrant"). Each Warrant will entitle the holder thereof to purchase one additional Common Share at a price of $0.06 per Common Share for a period of 24 months following the closing date of the Offering.

The Company anticipates using the net proceeds of the Offering to fund operations and working capital. In connection with the Offering, the Company may pay a finder's fee in cash or securities or a combination of both, as permitted by the policies of the TSXV. Closing of the Offering is expected to occur in one or more tranches, with the first tranche expected to close on or about November 30, 2023.

The Units and any securities issuable upon conversion thereof will be subject to a statutory hold period of four months and one day from the date of issuance of the Units. The Offering is subject to final approval by the TSXV.

The Units will be offered and sold by private placement in Canada pursuant to exemptions from the prospectus requirements under National Instrument 45-106 Prospectus Exemptions, and in certain other jurisdictions on a basis which does not require the qualification or registration of the securities issued pursuant to the Offering.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933 Act") and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. persons" (as such term is defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements of the 1933 Act any application state securities laws.

Financial Update

Overall negative macro-economic factors continue to constrain the renewable energy industry, and consumer spending remains soft, due to inflation and high-interest rates. As a result, in October 2023, the Company proceeded with a staff rationalization, across all geographies, and reduced headcount by approximately 22 percent to realign with market expectations. With restructuring of functional areas and focus on near-term priorities, management believes this reduction will not affect near or medium-term operations or objectives. As reported in the Company's financial statements for the period ended June 30, 2023, accounts receivable collection delays continue to create short-term liquidity constraints. Management continues to work closely with the key customer and multiple payments are now being received monthly. However, as the whole industry struggles with lagging sell-through, the customer's accounts receivable balance remains high. Until the industry recovers, consumer spending rebounds and/or solar energy incentives increase, management believes the slower than usual collection on account receivable will continue to constrain Eguana's financial position. Management believes the closing of the Offering, as contemplated herein, assuming approximately $2.0 million is raised, will ease the current cash flow constraints of the Company. Furthermore, management anticipates that the Closing of the Offering, along with the Company successfully collecting historical receivables from our partners and creating additional liquidity from the Company's current assets, will continue to fund the cash flow needs of the business.

The Company will file its third quarter financial report and will host an investor call on Wednesday November 29, 2023.

Eguana Technologies Inc. - Third Quarter 2023 Results Conference Call & Webcast - November 29, 2023, at 5:00pm MST.

Link Access: https://services.choruscall.ca/links/eguanatechnology2023q3.html

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended (the "1933 Act") or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.

About Eguana Technologies Inc.

Eguana Technologies Inc. (TSXV: EGT) (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
Justin.Holland@EguanaTech.com

Forward-Looking Statements and Risks

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.

Forward-looking statements include, among other things, statements regarding the timing and completion of the Offering, the use of proceeds of the Offering, receipt of TSXV approval, successful accounts receivable collection, creating additional liquidity with the Company's current assets, the Company being able to continue business operations due to cash flow constraints, whether the Company's reduction of headcount will help ease cash flow constraints, and the successful and ongoing strategy with respect to product solutions and product development. Forward-looking statements are not a guarantee of future performance and involve 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 to obtain necessary regulatory approvals to close the Offering; failure by the Company to close the Offering as contemplated; failure by the Company to properly allocate use of proceeds for immediate needs, such as debt service, payroll and payments; failure by the Company to collect accounts receivable in a timely manner; failure by the Company to create additional liquidity from the Company's current assets; failure by the Company to raise additional funds to fund working capital requirements or to solve its current cash flow constraints, which would impact the viability of the business to continue operating as a going concern or the viability of the business to continue operating altogether; the continued weak economic market and business conditions in general and more specifically in the renewable energy industry; competitive factors; failure of the Company to deliver on or execute VPP agreements; warranty or product failures, the Company achieving its strategic objectives; and other factors as set out in the "Risk Factors" section of the Company's management's discussion and analysis for the three and six months ended June 30, 2023 and annual information form dated May 1, 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.

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.

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