Eguana Technologies Inc (OTC:EGTYF) Stock Corrects 20%: Here is Why
On Thursday, a considerable number of companies came on the news cycle among investors, and it may well be a good time to consider keeping an eye on some of those. One company that could well be worth looking into at this point in time is Eguana Technologies Inc. (OTC:EGTYF). The company is one of the leading players in the manufacturing and development of high-performance energy storage systems.
Yesterday, it came up with a business update and also announced its aim to conclude a non-brokered private placement. It announced that it continued its progress with regards to its utility and distributed energy resource management (DER) partnerships. It continued the progress on that front by taking the number of VRRs spread across North America and Australia to 7. The solution from the company would work with the platforms for distributed energy resource providers, which had been fully integrated with the Eguana Cloud Platform and Eguana Technologies’ range of Energy Storage Solutions (ESS).
In addition to the VPP partnerships, the company’s installer training initiative, conducted through Eguana University, continued to surpass expectations, as per the news release yesterday. The company revealed that there had been more than 1200 enrolments in 2023 up until yesterday, and that number was made up of more than 200 installation companies.
The Chief Executive Officer of the company, Justin Holland, spoke about the development too. He stated that partnerships provide the company with fast access to the sales channels in which the finance or utility companies already possess customer bases. That puts the finance or utility companies in a position to incentivize or finance energy storage solutions meant for their customer bases. As an example, Holland noted that, as per the latest FinanzDesk partnership based out of Europe, ESS units would be initially offered to the current customers as per lease agreements from December 2023. He went on to note that such an arrangement removed the upfront cost for the consumer and made the sales process in the channel far simpler.
Another major announcement made by Eguana Technologies was with regards to a private placement offering. The company announced that it could make an offering of a maximum of 50000000 units in the company for the price of $0.04 each for the total proceeds to the tune of $2 million. Additionally, the company also had the option to raise the size of the offering to as much as $2.5 million at its sole discretion.
Each unit offered by the company would comprise one common share in the company and one common share purchase warrant. Each share warrant in the company would provide the holder with the right to pick up an additional common share in the company for the price of $0.06 up until 24 months since the closing date of the private placement. Eguana Technologies revealed that it intended to use the funds from the offering for the purpose of funding its operations and for working capital purposes. The company could also pay a finder’s fee in connection with the offering in the form of securities or cash.