Japan's Itochu to invest USD 3.7m in energy storage co Eguana

Image by Eguana (www.eguanatech.com).

March 3 (Renewables Now) - Japanese general trader Itochu Corp (TYO:8001) will invest CAD 5 million (USD 3.7m/EUR 3.4m) in Canadian energy storage systems developer Eguana Technologies Inc (CVE:EGT).

Calgary-based Eguana will raise the sum by offering unsecured convertible debentures with a maturity of three years. The debentures will have a coupon of 10% per annum that is payable in cash or additional common shares. They are convertible into Eguana units at a price of CAD 0.15 apiece, with each unit consisting of one common share and one-half of one common share purchase warrant. In turn, each warrant will entitle the holder thereof to buy an additional common share at CAD 0.20 for a period of three years following the closing date. If all debentures and warrants are converted, Itochu will secure a 14.1% stake in Eguana.

The Canadian firm will use the funds to cover working capital and general corporate expenditures. The transaction is pending regulatory clearance and is seen to close on or around March 13, 2020.

Eguana has an existing relationship with Itochu that includes the integration of Moxia Energy Holding's artificial intelligence (AI) software with the Eguana Evolve platform, to be exclusive to resale by the Japanese trader. Eguana noted that the new product will be certified with a full suite of virtual power plant (VPP) features supporting fleet aggregation and residential applications.

The two parties have also agreed that Itochu will be in charge of procuring for and supplying Eguana the needed lithium batteries for the production of its offerings.

"This partnership will open up additional sales channels and opportunities within fleet management and VPP's globally while strengthening our battery module supply availability and cost profile," commented Eguana CEO Justin Holland. In turn, executive vice president Brent Harris said that Itochu’s expertise will stabilise the company’s battery supply chain and increase module availability.

(CAD 1.0 = USD 0.749/EUR 0.673)

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