Mr. Justin Holland reports

EGUANA ARRANGES SHORT-TERM FINANCING

Eguana Technologies Inc. has completed some short-term financing arrangements to support near-term liquidity.

The company has entered into short-term loan agreements to increase the company's short-term working capital and bridge cash flow, to incoming funds from the previously announced inventory return, in news releases dated Feb. 7, 2024.

The company closed short-term bridge loan financing in the principal amount of approximately $220,000, with certain lenders, including the company's chief executive officer and members of the board of directors. A portion of the bridge financing was received in U.S. dollars and a portion in Canadian dollars and will be repayable in the respective currencies. The principal amount of the bridge financing, together with interest accrued thereon, will become due and payable on April 30, 2024. Interest shall accrue on the principal amount at a rate of 5 per cent per month. The lenders will not receive any other fees or commissions. The bridge financing is unsecured. The proceeds of the bridge financing will be used for general working capital.

"The bridge financing is important to allow the company to continue various operations, while awaiting funds from the inventory return anticipated later in March," said Justin Holland, CEO. "And we appreciate the participants in the bridge financing for their confidence in the company as we continue executing our VPP rollouts along with objectives in Europe and Australia."

The portions of the bridge financing obtained from the company's chief executive officer and board chair constitute related-party transactions under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. This transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the transaction, nor the consideration paid to the lenders of the bridge financing, who are related parties of the company, would exceed 25 per cent of the company's market capitalization.

In the Feb. 7, 2024, news release, the company outlined that it is exploring potential alternatives to improve liquidity and enhance shareholder value, and this remains in place, as Eguana manages short-term liquidity. At present, there can be no assurance as to what, if any, further alternatives might be pursued by the company, nor if this bridge financing is adequate to meet all short-term obligations. 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 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 over 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, 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.

We seek Safe Harbor.