Eguana and ITOCHU Amend Maturity Date of Unsecured Convertible Debenture, Provides Medicine Hat Update

Executive Summary

• Eguana Technologies Inc. entered into an agreement with ITOCHU Corporation to amend the maturity date of ITOCHU’s unsecured convertible debenture to March 13, 2026, extending the runway for a longer‑term solution.
• The amendment also rolls forward all accrued interest that had previously been extended, indicating continued liquidity pressure stemming from a downturn in residential renewable markets and unpaid invoices from a U.S. customer.
• Eguana confirmed progress on its Energy Innovation Challenge project in Medicine Hat, Alberta, with hardware installation completed and the third phase of software development underway.

Key Details

• Debenture Amendment: Original maturity date extended to March 13, 2026; all past interest also extended.
• Purpose: Provides additional runway for Eguana and ITOCHU to negotiate a longer‑term financing or restructuring solution.
• Liquidity Context: Company cites “tight liquidity conditions” caused by a significant downturn in residential renewable markets and lack of payments from a prior U.S. customer.
• Partner Support: ITOCHU remains a supportive partner, offering solutions to aid Eguana’s transition toward utility‑scale applications.
• Operational Update – Energy Innovation Challenge (Medicine Hat, AB):
• Project selected as an award recipient; aims to demonstrate utility‑oriented functions of the Eguana Edge™ Distributed Energy Resource Management System on a single feeder.
• Hardware installation of nine EVOLVE™ LFP Battery Energy Storage Systems completed in December 2025.
• Third phase of software development has commenced, with ongoing engagement with utilities for performance optimization.
• Fleet Status: Over 1 MW of Eguana systems operating in Western Canada; additional fleets active in California, Vermont, Hawaii, and Nova Scotia.

Notable Quotes

“As we continue managing through tight liquidity conditions created by the significant downturn in residential renewable markets… ITOCHU has remained a valuable and supportive partner to the Company bringing solutions to the table to support our utility channel transition.” – Justin Holland, CEO, Eguana Technologies Inc.