Mr. Justin Holland reports

EGUANA PROVIDES FURTHER FINANCIAL UPDATE

Eguana Technologies Inc. has provided an update to its press release dated Feb. 7, 2024.

Eguana continues to actively manage its liquidity, as a result of the overall solar energy sector's underperformance. Decreased consumer spending related to inflation, high-interest rates and increased dealer fees has restrained and delayed market recovery in the industry.

The company has already negotiated various debt amendments to reduce near-term cash flow requirements and completed a private placement in December, 2023. Further, the collaboration agreements with the company's key customer, which provided a fixed payment schedule, were expected to provide near- and medium-term liquidity. However, the company has learned that the key customer is experiencing the same industry pressures as Eguana, including a liquidity shortfall. As a result, delays and/or shortfalls on the fixed payment schedule have occurred and are anticipated to continue to occur.

In light of the company's financial position, the board of directors of the company is exploring potential alternatives to improve liquidity and enhance shareholder value. The company is currently negotiating an option, with an existing lender, which would provide short-term funding, through to the large receivable previously disclosed on Feb. 7, 2024, that the company expects to be collected in March. Other alternatives may include, but not be limited to, further rationalization of the business and strategy, strategic investments in the company by third parties, or some combination thereof. These alternatives are critical for the company to manage near- and medium-term liquidity, and to meet its financial obligations.

"Weak markets, coupled with slow collections from the key customer and high debt service, compel us to take further action to adapt to current conditions and to help ensure Eguana can move forward and execute operational objectives," said Justin Holland, chief executive officer. "In the meantime, we remain focused on advancing relationships in the virtual power plant space and delivering on our mission to connect homeowners and utilities for a seamless experience through the distributed grid transition."

At present, there can be no assurance as to what, if any, alternatives might be pursued by the company. The company does not intend to disclose further details with respect to its review or actions taken, unless and until the board of directors has approved a transaction or otherwise determines that further disclosure is warranted.

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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