Acquisition Closing Date Set for July 6th, 2020
TORONTO, ON / ACCESSWIRE / June 24, 2020 / Kontrol Energy Corp. (CSE:KNR)(OTCQB:KNRLF)(FSE:1K8) ("Kontrol" or "Company") is pleased to announce that it has completed the first tranche closing of its previously announced (see press release dated May 19th, 2020) Non-Brokered Private Placement for Proceeds of $1.25 Million and has set July 6th, 2020 as the closing date for the previously announced acquisition of a building solutions company (the "Acquisition Target") (see press release dated May 19th, 2020).
"We look forward to completing this strategic acquisition since it is expected to grow our recurring revenues, add a number of new large cap real-estate owners and asset managers to our existing blue-chip customer base, and add 100 new buildings to Kontrol's customer base," said Paul Ghezzi, CEO of Kontrol Energy. "We expect more buildings to equate to increased operating leverage to scale recurring revenues through SaaS, IoT, Cloud and building automation. We have good visibility into closing the balance of our financing, and look forward to building upon our successful history of purchasing growing, accretive, and profitable companies"
Based on its July 31, 2019 fiscal year unaudited financial statements, The Acquisition Target generated $3.7 Million of revenue and $843,000 of Net Income before tax.
Approximately 40% of the Acquisition Target's revenues are expected to be annually recurring and the Acquisition Target has developed a scalable platform. In addition to operating synergies, Kontrol anticipates a significant opportunity for cross-sales through the merger of customers.
With the completion of the first tranche closing and existing cash on hand the Company has sufficient funding to complete the purchase of the Acquisition Target. The Company anticipates a second tranche closing of the Non-Brokered Private Placement by June 30, 2020.
The closing of the acquisition is subject to several conditions, including the provision of certain confirmatory due diligence information to Kontrol. For commercial reasons, the identity of the Acquisition Target will remain confidential until the completion of the acquisition.
About Kontrol Energy
Kontrol Energy Corp. (CSE:KNR)(OTCQB:KNRLF)(FSE:1K8) is a leader in the energy efficiency sector through IoT, Cloud and SaaS technology. With a disciplined mergers and acquisition strategy, combined with organic growth, Kontrol Energy Corp. provides market-based energy solutions to our customers designed to reduce their overall cost of energy while providing a corresponding reduction in greenhouse gas (GHG) emissions.
Kontrol Energy is one of Canada's fastest growing companies in 2018 and 2019 as ranked by Canadian Business and Maclean's.
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Additional information about Kontrol Energy Corp. can be found on its website at www.kontrolenergy.com and by reviewing its profile on SEDAR at: www.sedar.com
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For further information, contact:
Paul Ghezzi, Chief Executive Officer
[email protected] or [email protected]
Kontrol Energy Corp.,
180 Jardin Drive, Unit 9, Vaughan, ON L4K 1X8
Tel: 905.766.0400, Toll free: 1.844.566.8123
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including information relating to the completion of the purchase of the Acquisition Target, the closing of a second tranche of the private placement, future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements regarding possible future acquisitions and/or investments in operating businesses and/or technologies, accelerated organic growth, expansion of smart energy technologies into US markets, strategic partnerships to expand into North American Markets, acceleration of recurring SaaS revenues, the provision of solutions to customers and Greenhouse Gas emissions reductions, proposed financial savings and sustainable energy benefits and energy monitoring. Subsequent to year-end, there was a global outbreak of COVID-19 (coronavirus), which has had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put, in place by Canada and other countries to fight the virus. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that the conditions, including confirmatory due diligence, related to the purchase of the Acquisition Target, will be fulfilled, that the balance of the private placement funds will be raised, that suitable businesses and technologies for acquisition and/or investment will be available, that such acquisitions and or investment transactions will be concluded, that sufficient capital will be available to the Company, that technology will be as effective as anticipated, that organic growth will occur, and others. However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to, that the either the Acquisition Target or Kontrol will not fulfill conditions to the closing of the Acquisition; that the balance of the private placement funds will be raised, lack of acquisition and investment opportunities or that such opportunities may not be concluded on reasonable terms, or at all, that sufficient capital and financing cannot be obtained on reasonable terms, or at all, that technologies will not prove as effective as expected that customers and potential customers will not be as accepting of the Company's product and service offering as expected, and government and regulatory factors impacting the energy conservation industry. Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and the Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise, except as required under applicable securities law.
SOURCE: Kontrol Energy Corp.