Management moving forward
" Kontrol Energy Corp. (CSE:KNR, FSE:1K8) (the "Company") announces that it has entered into a Letter of Intent (LOI) to acquire an established and leading provider of Emission Monitoring solutions (the "Target"). The Target has been providing the Canadian and US market with high quality, value added solutions for emissions and process monitoring applications for more than 20 years. The Target has averaged revenues (unaudited) of over $5 Million and normalized EBITDA of approximately $900,000 over the past 3 years. The purchase price is $3.35 Million CAD subject to working capital adjustments with a vendor take back of up to approximately $500,000 for 12 months at an interest rate of 6%.
"We are looking forward to completing this acquisition as it is a strong strategic fit with our existing subsidiary ORTECH Consulting Inc.," says Paul Ghezzi, CEO of Kontrol Energy. "Expanding our emission monitoring and solutions vertical in Canada and gaining a growing footprint in the USA is part of our long-term strategy."
The acquisition is subject to due diligence, applicable approvals and a definitive purchase and sale agreement. The acquisition is anticipated to be completed in 120 days or less. The financing is anticipated to be primarily from long-term debt sources.
About Kontrol Energy Corp.
Kontrol Energy Corp. (CSE:KNR, FSE:1K8) 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."
