CALGARY, Alberta, Sept. 25, 2019 (GLOBE NEWSWIRE) -- Eguana Technologies Inc. ("Eguana" or the "Company") (TSXV: EGT) (OTCQB:EGTYF) announces that following the termination of its supply agreement (the “Supply Agreement”), dated January 25, 2018, with Mercedes Benz Energy GmbH (“MBE”), as previously announced on June 20, 2018, the Company proceeded to secure a master supply agreement with Hanwha Q Cells for Europe, a contract with the South Australian government for early entry into the South Australian Home Battery Scheme, and a distribution agreement with Australian based AC Solar Warehouse to support its entry into the Australian residential energy storage market.
Negotiated Termination of Supply Agreement
In May 2018, MBE advised Eguana that it would be exiting the residential battery market and would cease manufacturing/selling batteries for residential applications. Accordingly, Eguana and MBE agreed to terminate the Supply Agreement under the following terms:
- Return of Eguana test units and corresponding credit note to MBE for USD $10,000;
- MBE paid to Eguana a Euro 700,000 termination fee;
- MBE provided Eguana with an endorsement as a preferred energy storage solution (the “MBE Endorsement”);
- MBE provided to Eguana a full engineering report of all tests performed through the product validation phase; and
- MBE transferred their global energy storage system sales pipeline to Eguana.
With the assistance of the MBE Endorsement, engineering report, and access to MBE’s sales pipeline, Eguana proceeded to secure a master supply agreement with Hanwha Q Cells and a distribution contract with Australia’s AC Solar Warehouse, for an aggregate amount of $12.6M. To date, Eguana has received $637,054 in revenue under the foregoing agreements with additional shipments in transit to both customers as well as having units through various stages of the manufacturing cycle. All corresponding revenue is expected to be fulfilled in full by 2021. As a result of the early termination of the MBE Supply Agreement, Eguana did not realize the originally forecasted MBE contract value of $13 Million (January 29, 2018).
About Eguana Technologies Inc.
Based in Calgary, Alberta Canada, Eguana Technologies Inc. (EGT: TSX.V) (OTCQB: EGTYF) designs and manufactures high performance residential and commercial energy storage systems. Eguana has two decades of experience delivering grid edge power electronics for fuel cell, photovoltaic and battery applications, and delivers proven, durable, high quality solutions from its high capacity manufacturing facilities in Europe and North America.
With thousands of its proprietary energy storage inverters deployed in the European and North American markets, Eguana is one of the leading suppliers of power controls for solar self-consumption, grid services and demand charge applications at the grid edge.
Eguana Technologies Inc.
Forward Looking Information
The reader is advised that some of the information herein may constitute forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning assigned by National Instrument 51-102 – Continuous Disclosure Obligations and other relevant securities legislation.
Forward-looking statements are not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Readers are also directed to the "Risk Factors" section of the Company's most recent audited financial statements which may be found on its website or at sedar.com The Company does not undertake any obligation to release publicly any revisions to forward-looking statements contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.