Calgary, Alberta–(Newsfile Corp. – January 22, 2025) – Eguana Technologies Inc. (TSXV: EGT) (“Iguana“or”company“), a leading developer and manufacturer of high-performance energy storage systems, provides a financial and operational update.
As a result of the overall underperformance of the solar and renewable energy sector, Eguana continues to actively manage its liquidity. Inflation-related consumer spending declines, high interest rates, and rising dealer fees continue to delay the recovery of the consumer market within the industry. A key US customer continues to experience delays in financial recovery, driven by the same industry pressures affecting Eguana, which has continued to delay previously agreed payment amounts and timing to Eguana. The Company anticipated that these cash inflows would support short-term liquidity requirements; however, the customer continues to experience late payments and has not yet reached his previously agreed upon payment schedule.
In addition, the collaboration with BC Hydro, announced on November 27, 2024, was also expected to support financial liquidity for the Company, however sales rates were delayed until December, causing delays in billing and cash collections for the Company. Utility deliveries are expected to begin this week, with stable weekly rates expected thereafter.
As described in the Third Quarter 2024 Financial Results news release dated November 28, 2024, the Company completed a debt modification with its senior lender to extend the loan amortization through May 15, 2026, beginning on December 15, 2024. All previously deferred payments and accrued interest are included in the loan balance and amortized. for a longer loan term. At this time, due to the liquidity items mentioned above, the Company has delayed the regular amortization payment on January 15, 2025 and anticipates that the loan will fall into technical default. The Company has initiated discussions with its senior lender to support the Company’s shift to service sales and to establish a forbearance agreement, for a period of time.
“With weak renewable energy consumption markets, Eguana has driven an aggressive entry into the North American utility channels, which has gained traction in recent months as utilities begin to use advanced battery technology as grid assets to increase network capacity and efficiency Slow collections from a major customer, and high debt servicing, forced us to take prudent action to further adapt to the conditions of the market and to help drive Eguana forward to execute operational objectives,” commented Justin Holland, CEO. “Meanwhile, we remain focused on advancing key relationships in the utility and virtual power plant channels, while fulfilling our mission to connect homeowners and utilities for a seamless experience through distributed network transition.”
Finally, Mr. Daljit Ghotra has resigned from long-time Eguana, effective January 31, 2025. The Eguana development team continues to exceed its development goals towards expanding its software platform, including enhancements AI-driven Eguana Edge, Exchange and Engage products and intends to recruit a new technical leader focused more directly on these technologies. Cloud features that enable better visibility and control at the network edge for operators and more advanced integration with our industry partners’ platforms are expected to accelerate service sales and generate long-term recurring revenue from the installed power base residential class services of Eguana storage systems.
“Mr. Ghotra has been instrumental in driving our advanced electronics and hardware platforms and certifications for many years providing quality of service, enhanced VPP products with a full range of stakeholder features,” added Holland. “He will remain a key external source of hardware for the team as the focus on Eguana Cloud and Eguana Edge increases, both of which are critical to driving the success of the virtual power plant.”
About Eguana Technologies Inc.
Eguana’s vision is to build the network of the future by providing flexible, modular and cost-effective alternatives to traditional network upgrades. Our technology provides value to all key stakeholders – from the consumer, to the electricity retailer, the distribution company and the system operator.
Since 1998, Eguana Technologies has connected utilities to consumers through its high performance commercial and residential energy storage solutions. The Eguana suite of products has been designed from the ground up with both the end user and utility in mind to seamlessly transition the power grid.
Manufactured in local facilities around the globe to ensure compatibility and quality, Eguana’s standardized platform allows flexibility to ensure each product solution is optimized for use in key network modernization markets.
To learn more, visit www.EguanaTech.com or follow us on LinkedIn or @EguanaTech in X.
Company requirements Justin Holland, CEO of Eguana Technologies Inc. +1.416.728.7635 Justin.Holland@EguanaTech.com
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 (collectively, “forward-looking statements“) within the meaning assigned by National Instrument 51-102 – Continuing Disclosure Obligations and Other Relevant Securities Legislation. In particular, forward-looking statements include, among other things, statements regarding, anticipated payments from a key Eguana customer, the effects of the collaboration with BC Hydro, the estimated time of service deliveries, the billing rate and cash collection from a key Customer of Eguana, the Company’s cash flow needs and liquidity, any anticipated market recovery, success and traction in servicing channels, the Company’s senior lender loan status, the Company’s ability to negotiate financing and/or a forbearance from lenders existing, success with product development objectives, effects of cloud features and the Company’s business operations, cash flow constraints, impacts of liquidity, Collection of accounts receivable, personnel and future statements are not guarantees 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 related to: the Company’s failure to improve cash flow, which would have a material adverse effect on the business’s viability as a going concern; timely collection of accounts receivable; effective implementation and deployment of Eguana solutions and building additional partnerships and developing existing partnerships; general economic, market and business conditions; competitive factors; achieving strategic objectives; the unforeseen effects of the reduction in the number of employees; inability or delays in obtaining materials; the Company’s ability to enter and sell into utility channels and/or advance relationships in the virtual power plant space; slower than expected adoption of energy storage technologies; inability to integrate with industry partners; lack of success in product development and improvements; the effects of the removal of the CTO and/or the replacement of the CTO; the Company’s failure to improve liquidity, access financing with existing or new lenders and obtain a forbearance from its senior lender; to increase its own capital when needed and with reasonable conditions; to effectively rationalize the business and strategy or to recapitalize and/or restructure the Company and other factors set forth in the “Risk Factors” section of the Company’s management’s discussion and analysis for the three and nine months ended September 30, 2024 , dated November 30, 2024 and the annual financial statements and management discussions and analyzes dated May 27, 2024, 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 of this document. The Company undertakes no obligation to publish any revisions to the forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unforeseeable events, except as may be required by applicable laws. for securities.
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