ITOCHU plans to invest in Eguana by converting the bonds into stock based on the stock price of the company
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Yoshihisa Suzuki, President & COO; hereinafter “ITOCHU”) announced today that it has invested in Eguana Technologies Inc. (headquartered in Calgary, Canada; Justin Holland, CEO; hereinafter, “Eguana”) in the form of unsecured convertible bonds with warrants. Moving forward, ITOCHU plans to invest in Eguana by converting the bonds into stock based on the stock price of the company.
Listed on the Toronto Stock Venture Exchange (TSXV), Eguana sells its own developed energy storage systems mainly in the markets of North America, Australia and Europe. ITOCHU and Eguana formed a strategic partnership in 2015, under which the two companies have been engaged in joint marketing activities. They have agreed to form capital ties for the purpose of expanding the business in North America, Australia and Europe, where the market of energy storage systems is expected to grow. ITOCHU will take advantage of the strengthened ties with Eguana in business collaborations with its following investee companies.
(1) Expansion of business of residential energy storage systems with Sunnova Energy Corporation, the leading TPO (Third Party Ownership) residential solar and storage service provider in the United States
(2) Integration of GridShare, AI software from Moixa Energy Holdings Ltd. (hereinafter, “Moixa”) of the United Kingdom, with an Eguana energy storage system
(3) Technology exchange with NF Blossom Technologies, Inc. of Japan, in the business of manufacturing energy storage systems
By connecting these collaborations organically, ITOCHU will expand sales of energy storage systems in the United States, Australia and Europe, and create new businesses, including the virtual power plant business featuring design for aggregation of energy storage systems by using the GridShare platform.
As of March 2020, ITOCHU has sold a cumulative total of about 30,000 units (equivalent to 300 MWh/90 MW) of Smart Star, an energy storage system of its own brand. In addition, in November 2018, ITOCHU began to market a next-generation model energy storage system integrated with GridShare AI software from Moixa, thereby providing customers for whom solar power feed-in tariff has expired with a service for controlling energy storage systems optimally by using AI. ITOCHU will expand its business in overseas markets by working with Eguana in evolving its knowledge on the energy storage system business, which has been cultivated in the Japanese market.
ITOCHU is focusing on the business of energy storage systems and related business. By increasing the ratio of renewable energy, ITOCHU will contribute to reducing greenhouse gas emissions, stabilizing the power supply and building a distributed energy society.
Source: Company Press Release