Eguana arranges $1.25-million debenture financing

Executive Summary

• Eguana Technologies announces a new non‑brokered private placement for up to $1.25 million aggregate principal amount of 10% subordinated secured convertible debentures, priced at $900 per $1,000 face value (10% original issue discount).
• The offering includes an oversubscription option for an additional $500,000 principal amount at a purchase price of $450,000.
• Proceeds will be used for working capital and general corporate purposes, with closing expected around October 17, 2025.

Key Details

• Aggregate Principal Amount: Up to $1.25 million (plus optional $500k oversubscription).
• Purchase Price: Up to $1,125,000 (10% OID) for the base amount; $450,000 for the oversubscription tranche.
• Pricing per Debenture: $900 for each debenture with a face value of $1,000.
• Conversion Terms: Each debenture convertible into 5,000 common shares at $0.20 per share, representing a 10% premium to the prior day’s closing price. Conversion may be exercised any time within 12 months from issuance.
• Interest Rate: Simple interest 10% per annum, payable in cash or common shares on the maturity date.
• Maturity Payment Options: Principal and/or interest may be satisfied in cash or common shares; if paid in shares, conversion price will be the greater of (i) VWAP for the 10 trading days preceding maturity, or (ii) the discounted market price per exchange policy.
• Security: Debentures are secured against company assets, pari‑passu with existing secured debentures and senior to unsecured debt; second priority to existing/future senior lender obligations (Venture Lending & Leasing IX Inc., WTI Fund X Inc.).
• Use of Proceeds: Working capital and general corporate purposes; finder’s fees may be paid as permitted.
• Closing Date: Expected on or about October 17, 2025, subject to regulatory and exchange approvals.
• Statutory Hold Period: Four months and one day after closing for the debentures and any shares issued upon conversion.
• Termination of Prior Offering: The earlier private placement announced on April 8, 2025 has been terminated per its terms; the new offering supersedes it to better align with strategic objectives and market conditions.

Notable Quotes

(No executive quotes were provided in the release.)