VANCOUVER, March 16, 2020 /CNW/ - ITOCHU Corporation (the "ITOCHU") reports that on March 13, 2020, it acquired $5,000,000 in a principal amount of unsecured convertible debentures (the "Debentures") of Eguana Technologies Inc. (the "Company") pursuant to the terms of a subscription agreement dated February 28, 2020 (the "Acquisition").
The Debentures will mature and be repayable on the date that is three (3) years (the "Maturity Date") from the closing date of the Acquisition (the "Closing Date"). The Debentures will have a coupon of 10% per annum, payable in cash or additional common shares in the capital of the Company (the "Common Shares"), compounded semi-annually and payable semi-annually or on such earlier date on which the Debentures are converted pursuant to their terms.
At any time prior to the Maturity Date, the principal amount, together with accrued interest in certain circumstances, of the Debentures will be convertible into units of the Company (the "Units") at a price of $0.15 per Unit, with each Unit being comprised of one Common Share and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $0.20 for a period of three (3) years following the Closing Date.
Prior to the Acquisition, ITOCHU did not own or have control or direction over any securities of the Company. Assuming the full conversion of the Debentures and the Warrants issuable upon conversion of the Debentures, ITOCHU will hold 49,999,999 Common Shares, equal to a 14% equity interest in the Company on a fully diluted basis.
ITOCHU acquired the Debentures for investment purposes. ITOCHU may from time to time (i) convert the existing securities or acquire additional securities, (ii) dispose of some or all of the existing securities, the securities received upon conversion of the existing securities or the addtitional securities or (iii) may continue to hold the securities of the Company.
To obtain a copy of the early warning report filed under applicable Canadian securities laws in connection with the transaction hereunder, please see the Company's profile on SEDAR at www.sedar.com. The Company's head office is located at Unit 3 6143 4th Street SE, Calgary, Alberta T2H 2H9.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ITOCHU Corporation
For further information: ITOCHU Corporation, 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo 107-8077 Japan; Contact: Kana Inoue, Media Relations Department, Tel. +81-3-3497-2121