KONTROL ENERGY ENTERS INTO LETTER OF INTENT TO ACQUIRE ENERGY CONSULTING COMPANY
Kontrol Energy Corp. has entered into a letter of intent to acquire a Canadian energy consulting company. The acquisition target is a leader in its field, has been operating in Canada for more than 20 years and services a loyal industrial customer base of profitable large capitalization companies. The Acquisition Target will remain undisclosed as the Letter of Intent is conditional upon the execution of a definitive share purchase agreement.
Based on the unaudited financial statements for 2016 the Acquisition Target had generated approximately $5.5 million of revenue and approximately $950,000 of normalized EBITDA. If the Proposed Acquisition is completed, it will be on a cash basis only and no shares of the Company will be issued. The Proposed Acquisition, if completed, will be accretive to revenue and earnings immediately upon closing.
"We look forward to completing this acquisition in the next 90 days and accelerating our growth plans," says Paul Ghezzi, CEO of the Company. "With the continued increase in electricity rates across North America the need for energy efficiency solutions and technologies continues to grow. Kontrol Energy is excited to deliver a future of innovative energy sustainability solutions for customers and executing on strategic acquisitions for the benefit of our stakeholders."
Kontrol Energy seeks to finance the Proposed Acquisition through its recently announced Debenture and Common Share Unit Offering. The anticipated closing date for the Proposed Acquisition is December 15, 2016.
About Kontrol Energy Corp.
Kontrol Energy Corp. (CSE:KNR) is a leader in energy efficiency solutions and technology. Through 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 Green House Gas (GHG) emissions.
