SIGNIFICANT ANNOUNCEMENT OF CLOSING DATE OF REVENUE PRODUCING ACQUISITION AND CLOSING OF FIRST TRANCHE OF UNDERWRITING PP.
Unnamed target will add significant ongoing revenue stream!
("Kontrol" or "Company") is pleased to announce that it has completed the first tranche closing of its previously announced (see press release dated May 19th, 2020) Non-Brokered Private Placement for Proceeds of $1.25 Million and has set July 6th, 2020 as the closing date for the previously announced acquisition of a building solutions company (the "Acquisition Target") (see press release dated May 19th, 2020).
"We look forward to completing this strategic acquisition since it is expected to grow our recurring revenues, add a number of new large cap real-estate owners and asset managers to our existing blue-chip customer base, and add 100 new buildings to Kontrol's customer base," said Paul Ghezzi, CEO of Kontrol Energy. "We expect more buildings to equate to increased operating leverage to scale recurring revenues through SaaS, IoT, Cloud and building automation. We have good visibility into closing the balance of our financing, and look forward to building upon our successful history of purchasing growing, accretive, and profitable companies"
Based on its July 31, 2019 fiscal year unaudited financial statements, The Acquisition Target generated $3.7 Million of revenue and $843,000 of Net Income before tax.
Approximately 40% of the Acquisition Target's revenues are expected to be annually recurring and the Acquisition Target has developed a scalable platform. In addition to operating synergies, Kontrol anticipates a significant opportunity for cross-sales through the merger of customers.
With the completion of the first tranche closing and existing cash on hand the Company has sufficient funding to complete the purchase of the Acquisition Target. The Company anticipates a second tranche closing of the Non-Brokered Private Placement by June 30, 2020.
The closing of the acquisition is subject to several conditions, including the provision of certain confirmatory due diligence information to Kontrol. For commercial reasons, the identity of the Acquisition Target will remain confidential until the completion of the acquisition.]
