Previous important news from KNR dated Feb 6,2017
THEY WOKE UP WITH A GREAT ANNOUNCEMENT
Not only completion of PP but showing management has enough confidence to participate in the PP. Also the DIBENTURE funding is progesssing well.
Of course eventually revenue results will determine the success of this company. But management seems to elicit funders with their plans.
KONTROL ENERGY CORP. COMPLETES PRIVATE PLACEMENT AND FOURTH TRANCHE CLOSING OF UNIT PRIVATE PLACEMENT OFFERING
Kontrol Energy Corp. has completed its previously announced non-brokered private placement of units for gross proceeds of $570,300. Pursuant to the Offering, the Company issued 950,500 Units at a price of $0.60 per Unit. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one common share of the Company at a price of $0.80 for a period of one (1) year, subject to accelerated expiry should the common shares trade on the Canadian Securities Exchange (the "CSE") at $1.00 or higher for ten (10) consecutive trading days.
Two senior officers and one director of the Company (the "Interested Persons") subscribed for an aggregate of 190,500 Units under the Offering for aggregate cash consideration of $114,300. The participation of these parties in the offering constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of securities being issued to the Interested Persons nor the consideration being paid by the Interested Persons will exceed 25% of the Company's market capitalization. The Interested Persons have no knowledge of any material information concerning the Company or its securities that has not generally been disclosed. Following the Offering, the combined direct and indirect voting interest of the Interested Persons is 62.05%.
Proceeds from the Offering will be used to complete a previously announced acquisition and for general working capital purposes. All securities purchased under this Offering will be subject to a four month and one-day hold period. Finders' fees may be payable on a portion of the Offering, in accordance with the policies of the CSE.
Closing of Debenture Offering
The Company also announces the completion of a fourth closing under its previously announced private placement offering (the "Debenture Offering") of units (the "Debenture Units") for gross proceeds of $219,000. Each Debenture Unit was priced at $1,000 and consists of a $1,000 principal amount 8% unsecured non-convertible debenture (each, a "Debenture") and 100 common shares (each, a "Common Share") of the Company (each Common Share having a deemed price of $0.57). Total gross proceeds to date from the Debenture Offering are $1,070,000. The Debenture Offering remains open to subsequent closings as proceeds are raised.
The Debentures will bear interest at a rate of 8% per annum, payable quarterly in arrears and will mature on October 31, 2019. The Debentures are non-convertible and non-redeemable. The payment of the principal of, and interest on, the Debentures will be subordinated in right of payment to senior indebtedness. The Debentures partially comprising the Debenture Units are not listed on any stock exchange or market. The Debentures and Common Shares comprising the Debenture Units will be subject to a resale restriction of four months and one day from their date of issuance.
The Company has paid a selling commission or finder's fee to certain securities dealers or finders not exceeding 9% of the gross proceeds from the sale of the Debenture Units.
Debt Settlement
Additionally, the Company has entered into a debt settlement agreement (the "Settlement Agreement") with one related subsidiary of the Company. Pursuant to the Settlement Agreement, the Company will issue 83,334 common shares of the Company in settlement of $50,000 owing to said party.
All securities issuances contemplated herein shall be subject to any statutory or regulatory requirements with respect to hold period and compliance with all rules and policies of the CSE.
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. delivers 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."
