Canadian energy storage company Eguana Technologies is seeking to raise US$2 million from a private share placement to fund sales expansion into Asia and the US as well as the Middle East and North Africa.

The manufacturer of smart grid and micro grid energy storage systems said this week it will issue 5 million units at US$0.40 per unit.

The net proceeds of the issue will be used to expand Eguana’s engineering and operational capacity following a new supply agreement with German storage manufacturer Sonnenbatterie for power inverters.

Michael Carten, CEO of Eguana, commented: “We currently have the capacity to produce approximately one thousand units per month in Germany and can increase this capacity in increments of one thousand per month with an additional investment of approximately $90,000 for each increment.”

Money raised will also accommodate anticipated demand for integrated power electronics solutions from battery manufacturers in Japan and the US, as well as developers of micro-grid power systems in the Middle East and North Africa

Mr Carten commented on the company’s sales forecast: “We have visibility on a significant potential revenue pipeline with qualified customers, where we are in various stages of the process to secure long-term purchase contracts in Japan, the US, and the Middle East.

“Bringing these deals to closure requires an investment in engineering and operations time to integrate control software, to develop prototypes, and to set up production lines with a contract manufacturer in the region.”

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