Eguana arranges $6-million

Eguana Technologies arranges $6-million offering

2016-06-09 17:25 ET - News Release

Mr. Justin Holland reports
EGUANA ANNOUNCES $6.0 MILLION OFFERING OF COMMON SHARES
Eguana Technologies Inc. has filed a preliminary short form prospectus in connection with a proposed offering of common shares in the capital of Eguana at a price of 22 cents per common share for aggregate gross proceeds of up to $6-million on a best-efforts basis. The offering will be led by Mackie Research Capital Corp., acting as lead agent and sole bookrunner in connection with the offering. Further, BayFront Capital Partners Ltd. has been appointed as a selling group member. In connection with the offering, the corporation has agreed to grant the agent an overallotment option, exercisable in whole or in part at any time until the date that is 30 days after the closing of the offering, to purchase up to an additional 15 per cent of the number of common shares sold pursuant to the offering on the same terms as the common shares sold under the offering to cover overallotments, if any, and for market stabilization purposes.

The agent will receive a cash commission equal to 7.5 per cent of the gross proceeds raised under the offering and will be granted non-transferable compensation options equal to 7.5 per cent of the number of common shares sold under the offering. Each compensation option will be exercisable into one common share for a period of 24 months from the closing of the offering at a price of 22 cents per common share.

Eguana intends to use the net proceeds of the offering to, among other things, improve the corporation's balance sheet, increase working capital to provide greater supply chain flexibility, and expand product development and customer service capabilities to meet growing demand, in addition to general corporate purposes. The offering is being made pursuant to a short form prospectus filed in each of the provinces of Alberta, British Columbia, Ontario and Nova Scotia. A copy of the preliminary short form prospectus is available under Eguana's profile on SEDAR. The offering is expected to close on or about June 29, 2016, and is subject to certain customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange, and the entering into by the corporation and the agent of an agency agreement.
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