Eguana Reaches Settlement to Collaboration Agreement with Duracell Power Center

Eguana Technologies Inc. (“Eguana” or the “Company“), a leading provider of high-performance energy storage systems, is pleased to announce it has reached a settlement (the “Settlement“) regarding the collaboration agreement dated January 1, 2024, and an associated security agreement dated January 31, 2024 (together, the “Agreements“), with Omega Electronics Manufacturing Services and Omega Green Power (doing business as “Duracell Power Center“).

Pursuant to the terms of the Settlement, in consideration for Eguana’s release of Duracell Power Center’s obligations under the Agreements, Duracell Power Center has paid Eguana a termination fee of US$250,000 in cash. Duracell Power Center has provided a reciprocal release of Eguana’s obligations under the Agreements.

Duracell Power Center will transfer ownership of US$1.1M in additional finished goods, consisting of both 5KW and 10KW Evolve systems, under the Agreements to Eguana. Eguana has agreed to provide replacement parts to Duracell Power Center as needed during the remaining warranty period for any products Duracell Power Center has sold. Duracell Power Center will remain responsible for field support costs of any warranty replacement.

Notwithstanding the Settlement, Duracell Power Center has agreed to increase the amount of manufacturing credit available to Eguana under the Agreements by US$250,000 to US$1.45M. The credit must be fully utilized by Eguana within the next 36 months.

The settlement agreement increases our finished goods inventories, which have been key to executing the feeder enhancement project in British Columbia, as well as providing additional systems to continue accelerating our utility strategy” commented Eguana CEO Justin Holland. “The cash component has provided some near-term liquidity relief and the manufacturing credit and raw materials will reduce working capital requirements balance of year and through 2026.”