An impressive update from management re KNR ACHIEVEMENTS!
/ Kontrol Energy Corp. (CSE: KNR, FSE:1K8), ("Kontrol" or the "Company") a leading energy technology and solutions company is pleased to provide a corporate update relating to progress of operations and strategic activities over the past four months.
The highlights include:
Completion of CEMSI acquisition in September 2018, adding $6 Million of annual revenues and approximately $1 Million in annualized EBITDA
Following the CEMSI acquisition in September, Kontrol has received 2 significant customer orders, totaling over $2 million.
Secured 2 contracts with Licenced Producers in the Cannabis sector to provide energy efficiency services.
Anticipated annualized revenue run rate of $16 Million beginning in Q4 2018 as the CEMSI acquisition is consolidated
Accelerating revenue synergies across operating subsidiaries
In September 2018, the company finalized the acquisition of CEM Specialties Inc. (CEMSI) an Ontario based emission integrator focused on helping companies monitor and reduce emissions throughout the USA, Canada and abroad. CEMSI services deliver over 25 years of experience in the industry, with more than 1,000 sites currently in operation across 3 continents. Paul Ghezzi, CEO of Kontrol Energy stated, "We are very pleased with closing the acquisition of CEMSI as this will generate considerable revenues as well as add to our bottom line, while gaining a growing footprint in the USA as part of our overall strategic growth initiatives. In the short time since the acquisition of CEMSI, the Company has received two significant orders, which includes a CAD $1.1 Million order from a global cement company and a CAD $1.2 Million order from a global mining company."
IOT Platform Expansion
Kontrol is in the midst of expanding its IOT platform to include new hardware and software additions. Details of the expansion will be provided prior to year end. Currently Kontrol is providing real-time energy management in over 200 Buildings across Canada, spanning more than 16 Million square feet and is generating in excess of $1 Million per annum in recurring revenues. Kontrol is designing a highly scalable energy management solution which can be expanded into global markets.
The Company's IOT platform which includes a Software as a Service (SaaS) solution has been identified as a strategic driver of future organic growth.
The Cannabis industry requires large amounts of low-cost energy to be successful, representing a new market for Kontrol. Through distributed generation, real-time energy analytics and emission technologies, Kontrol assists Licensed Producers in reducing their overall cost of energy while supporting mission critical infrastructure. Kontrol also provides solutions and technologies to meet air quality and emission compliance.
In the summer of 2018, the Company announced that it would be entering the cannabis market to assist Licensed Producers with the implementation of Kontrol's energy saving solutions. The Company has since signed two agreements with Licensed Producers in Ontario but due to industry competitive purposes the company cannot disclose the names of the parties involved.
Based on industry estimates it takes approximately 2,000 kilowatt hours to produce a pound of cannabis using traditional growing methods. That's similar to how much electricity is used by an average household over a period of 2 to 3 months. Given the number of licensed cannabis growers in Ontario, up to one percent of Ontario's electricity grid may be required to fuel the Ontario market. The US market has the potential to be twenty times larger than the Ontario market opportunity.
"In less than 2 years we have grown our revenue run rate from $1.8 Million to $16 Million," continued Paul Ghezzi. "We have been delivering on our stated goals and objectives and seek to continue our strong growth through further accretive acquisitions and the expansion of our smart energy technologies."
About Kontrol Energy
Kontrol Energy Corp. (CSE: KNR, 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