Mr. Justin Holland reports

EGUANA PROVIDES A BUSINESS AND FINANCIAL UPDATE AND ANNOUNCES A PRIVATE PLACEMENT OF UP TO $2.0 MILLION

Eguana Technologies Inc. has provided a business update and intends 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 multiyear virtual power plant (VPP) referral and promotion partnership with a long-time major utility partner in Australia, which will be driven through direct and multimedia 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 enrolments 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 chief executive officer. "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."

Private placement

The company intends to complete a non-brokered private placement offering of up to 50 million units of the company at a price of four cents 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.

Each unit shall comprise one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share at a price of six cents 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 finance 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 TSX-V. Closing of the offering is expected to occur in one or more tranches, with the first tranche expected to close on or about Nov. 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 TSX-V.

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.

Financial update

Overall negative macroeconomic 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 per cent to realign with market expectations. With restructuring of functional areas and focus on near-term priorities, management believes this reduction will not effect 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 the company's partners and creating additional liquidity from the company's current assets, will continue to finance the cash flow needs of the business.

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

Eguana Technologies -- third quarter 2023 results conference call and webcast -- Nov. 29, 2023, at 5 p.m. MT

About Eguana Technologies Inc.

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, 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.

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