Further update from management
" ("Kontrol" or "Company") announces that the previously announced acquisition from March 14, 2019 is set to close the first week of July, 2019.
The established and leading provider of electrical retrofit services company (the "Target") has been providing the Canadian market with high quality, value added electrical efficiency services and retrofit applications for more than 15 years. The Target has averaged revenues (unaudited) of over $6.5 Million and normalized EBITDA of approximately $700,000 over the past 3 years.
The purchase price is $3.0 Million CAD, subject to working capital adjustments with a holdback of $300,000 for 12 months. Additional performance payments may be made based on the Target achieving certain EBITDA targets.
Paul Ghezzi, CEO of Kontrol Energy stated, "We are currently working together with the Target on a number of exciting opportunities in the hospitality sector where the Target is deploying Kontrol's energy technologies and solutions in their customer base. The Target has also recently entered the Cannabis sector as a supplier of electrical retrofit and efficiency services. We see significant cross-selling revenue opportunities following the completion of the acquisition."
The closing of the acquisition is subject to applicable approvals and a definitive agreement. The Company has a number of options to finance the acquisition, which are currently being reviewed, including available cash, debt, and convertible debt.
