Mr. Justin Holland reports

EGUANA ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT OF UNITS AND PROVIDES CORPORATE UPDATE

Further to the news release dated Nov. 23, 2023, Eguana Technologies Inc. has closed the first tranche of a non-brokered private placement offering of units of the company. The company issued 11.3 million units at a price of four cents per unit for gross proceeds of $452,000.

Each unit is composed of one common share and one common share purchase warrant. Each warrant entitles 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.

The units and any securities issuable upon conversion thereof are 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 Venture Exchange.

The units were 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.

The subscription by insiders pursuant to the offering is considered to be a related-party transaction subject to Multilateral Instrument 61-101. The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the private placement by insiders will not exceed 25 per cent of the fair market value of the company's market capitalization. The company did not file a material change report in respect of the related-party transaction at least 21 days before the closing of the first tranche of the offering, which the company deems reasonable in the circumstances to complete the offering in an expeditious manner. The company anticipates closing the second tranche on or about Dec. 22, 2023.

Corporate update

Alongside the financing activities to bridge short-term liquidity concerns, for the rest of 2023, the company will furlough employees related to its North American business channels, where renewable markets remain constrained due to larger macroeconomic factors. Australian and European subsidiaries, where market activities appear to be recovering at a faster pace and where the company has near-term sales momentum, will remain unaffected.

"We've seen an increase in utility engagements related to virtual power plant (VPP) rollouts, and with acceptance into seven VPP programs currently, we are optimistic looking into 2024 and are continuing our grid modernization strategy," commented Justin Holland, chief executive officer of Eguana. "With major objectives rolling out in Europe and Australia, U.S. market recovery predicted in mid-2024, and recurring revenue opportunities, we anticipate seeing revenue growth and stronger financial performance in 2024."

This decision to reduce short-term operational costs related to North American channels was based on typical seasonality patterns, where sales and installations generally drop through the second half of December, combined with the overall slowness of the renewable energy sector in the United States. Management has also begun working to transfer the North American sales team to its U.S. partner to continue building out distribution and retail sales channels under the DPC brand, further reducing 2024 operational costs. Additionally, the company received approval from its lending partner to defer its Dec. 1 payment, under its long-term debt agreement, to Dec. 15.

About Eguana Technologies Inc.

Eguana (TSX Venture Exchange: EGT) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. The company also markets and sells a suite of microinverter products, which are integrated with its energy storage platform, providing consumers with full solar and 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.

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