Mr. Justin Holland reports

EGUANA CLOSES $3,000,000 PRIVATE PLACEMENT AND ANNOUNCES DEBT SETTLEMENT

Eguana Technologies Inc. has issued 300,000 shares of newly created Series A first preferred shares at $10 per Series A share for aggregate gross proceeds of $3-million. The Series A shares were issued and sold to the company's largest shareholder DHCT II Luxembourg Sarl, the investment vehicle of funds managed by Doughty Hanson & Co. Managers Ltd., to support working capital requirements for Eguana's growth plan.

The Series A shares are convertible by the investor at any time into common shares of the company at a price of 24 cents per common share. The company may force conversion of the Series A shares once its TSX Venture Exchange-listed share price is equal to or greater than 60 cents for at least 60 consecutive days.

"Doughty Hanson continues to support the company through our global expansion and ramping up of revenues, and these funds will enable the immediate transition to contract manufacturing, significantly increasing our production capability," commented Justin Holland, Eguana chief executive officer. "Over the last six months, the team has been very successful attracting channel partners in our target markets, and this investment will ensure product availability."

In connection with the offering, the company and the investor also entered into a loan settlement and conversion agreement whereby an additional 134,860 Series A shares were issued to the investor at the deemed issue price to replace the existing $1.3-million secured loan facility previously disclosed on Aug. 22, 2018.

The securities issued under the offering are subject to a four-month-and-one-day hold period. The offering remains subject to final approval of the TSX Venture Exchange. The Series A shares acquired as part of the offering were acquired by the investor for investment purposes pursuant to the accredited investor exemption in Section 2.3 of National Instrument 45-106 (Prospectus and Registration Exemptions). The Series A shares acquired as part of the loan conversion were acquired by the investor for investment purposes pursuant to the securities-for-debt exemption in Section 2.14 of National Instrument 45-106 (Prospectus and Registration Exemptions).

The purchase of Series A shares by the investor is considered a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The related-party transaction is exempt from minority approval, information circular and formal valuation requirements pursuant to the exemptions contained in sections 5.7 (1)(a) and 5.5(a) of MI 61-101, as neither the fair market value of the gross securities issued under the offering, nor the consideration paid by the investor exceeds 25 per cent of the company's market capitalization. The company did not file a material change report 21 days before the closing of the offering since details were not settled until shortly prior to closing, and the company wished to complete the offering as soon as possible.

About Eguana Technologies Inc.

Based in Calgary, Alta., Canada, Eguana Technologies 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 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.

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