|By Marketwired .||
|February 6, 2014 08:13 PM EST||
CALGARY, ALBERTA -- (Marketwired) -- 02/07/14 -- Eguana Technologies Inc. (TSX VENTURE:EGT) ("Eguana" or the "Company"), a leading supplier of high performance power conversion and control systems for "smart grid" and "micro-grid" energy storage applications, announced today that it will remove the 5 year term on each of its Series of First Preferred Shares ("Preferred Shares"),subject to the approval of 2/3 of the votes cast at meetings of shareholders of each Series of Preferred Shares. The meetings will be held at the head office of the Company on February 27, 2014. The amendment is also subject to final approval of the TSX Venture Exchange, which has provided its conditional approval.
Currently, the Company is obliged to redeem the Preferred Shares of the Company within 5 years of the respective date of issue of each Series; and the Preferred Shares are characterized as debt under IFRS accounting practices. By removing the mandatory redemption feature the Preferred Shares cease to be an obligation of the Company and the Company believes that the Preferred Shares will be treated as senior equity.
Otherwise, the terms of the Preferred Shares remain unchanged and continue to represent a preference on any liquidation of the Company. Each Series of Preferred Shares continues to be convertible into common shares of the Company at the option of the holders in accordance with the terms of each Series; and can be redeemed by the Company at its option in accordance with their terms.
"These changes will significantly improve Eguana's balance sheet, and will remove confusion in the minds of shareholders and other members of the investment community concerning the nature of the obligation and the actual financial cost to the Company associated with the Preferred Shares that is caused by complex IFRS accounting standards that were recently introduced in Canada," commented Michael Carten, CEO of Eguana.
The largest holder of each Series of Preferred Shares, other than the Series 15 Preferred Shares, is Doughty Hanson Technology Ventures which has committed to vote in favor of the amendment provided that all Series are amended equally as planned. The Company expects that that the amendment will be approved for each Series of Preferred Shares.
At the record date for the meetings there were a total of 1,067,086 $10, Preferred Shares issued and outstanding in multiple Series - 7, 9, 10, 11 ,12 13 14 and 15. Each Preferred Share carries an annual dividend entitlement of 8% which is accrued semi-annually. Accrued and unpaid dividends are accreted (added) to the amount payable on redemption or liquidation and the number of common shares into which the Preferred Shares are convertible by the holders thereof.
About EGUANA TECHNOLGIES INC.
Headquartered in Calgary, Alberta, Canada, Eguana designs and manufactures intelligent high performance low-voltage power electronics platforms for distributed smart grid and energy storage applications. Eguana's software configurable platform enables energy storage systems to optimize the lower cost, modularity, and safety advantages of low voltage advanced battery technologies at a much lower cost, and with greater design flexibility than is possible with conventional power electronics solutions.
The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning the value of the amendment of the Preferred Shares; statements concerning the characterization of the Preferred Shares under IFRS standards and it's the value of the Company's technology for non-utility scale energy storage system.
Forward-looking information is 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 current Annual Information Form 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 information 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.