Further update shows everything moving forward
"(“Kontrol” or "Company") a leader in the energy efficiency sector through IoT, Cloud and SaaS technology is updating the timing of its recently announced acquisition and financing.
On March 14th, 2019 the Company announced that it had entered into a Letter of Intent (the "LOI") to acquire an established and leading provider of electrical retrofit services (the "Target"). 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.
The Company and the Target are finalizing the Share Purchase Agreement (SPA) and anticipate the transaction to close prior to the end of July 2019. Closing of the acquisition is subject to finalizing the SPA and the satisfaction of customary conditions, including the approval of the CSE.
On June 14th, 2019 the Company announced a private placement offering of up to 4,000 convertible debentures of the Company (the "Debentures"), at a price of $1,000 per Debenture, for gross proceeds of up to $4,000,000 (the "Offering"). The Company intends to use net proceeds of the Offering to complete the acquisition, expand into the US market through its Smart Factory platform with Toyota Tsusho and for general corporate purposes.
The Company anticipates completion of the Offering prior to the end of July 2019. Closing of the Offering is subject to the satisfaction of customary conditions, including the approval of the CSE.
About Kontrol Energy
Kontrol Energy Corp. (CSE: KNR) (OTCQB: KNRLF) (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.
