Kontrol Technologies awarded $9.7 Million HVAC and Automation Project from Canadian Multi-Family High Rise Customer

Rhea-AI Summary

Kontrol Technologies Corp. (OTCQB:KNRLF) has secured a $9.7 Million HVAC and Automation project for a new high-rise building in the Greater Toronto Area. This project, awarded to its subsidiary Global HVAC and Automation, is part of Kontrol's broader strategy to expand its capabilities in energy-efficient solutions. A Letter of Intent has been signed, with the contract expected to finalize in Q2 2022, and project commencement slated for Q3 2022, expected to conclude in Q4 2023. The company aims to enhance its recurring revenue through integrated building technology.

Positive

• Awarded a $9.7 million HVAC and Automation project, enhancing revenue potential.
• Expansion of in-house capabilities through vertical integration with energy-efficient solutions.
• Increased project footprint and capacity with the Global subsidiary.

Negative

• The project is contingent on timely contract finalization and execution, presenting potential delays.

TORONTO--(BUSINESS WIRE)-- Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol” or the “Company”), a leader in smart buildings and cities through IoT, Cloud and SaaS technology, has been awarded a $9.7 Million HVAC and Automation project, through its wholly owned subsidiary Global HVAC and Automation (“Global”) for a new high rise building in the Greater Toronto Area.

As described in the Company’s press release dated December 28, 2021, the Company has been quoting and bidding on various opportunities and this represents the awarding of one of those opportunities. Following the award of the project to Global a binding Letter of Intent (“LOI”) has been signed and a contract is in process of being drafted, with completion of that contract expected to take place in Q2, 2022. The project is anticipated to commence in Q3, 2022, with estimated completion in Q4, 2023.

“We are pleased that we are able to win these larger opportunities with our Global team,” says Paul Ghezzi, CEO of Kontrol Technologies. “Global provides us with a larger project footprint and capability that we seek to expand while we also focus on adding recurring revenues through an integrated building technology and service platform.”

Vertical Integration

Following the acquisition of Global in August of 2021, the Company has been focused on vertically integrating in-house capabilities around the inclusion of more energy efficient solutions such as heat pumps and VRV technology. Further, Global now offers ongoing service and asset management capabilities which the Company seeks to grow over time.

“We seek to lead the building efficiency market by offering our customers advanced solutions as part of our overall building integration and service platform,” continues Ghezzi. “Now more than ever, energy savings in buildings and the corresponding reduction in GHG emissions is critical to lower operating costs and improved sustainability.”

The customer for the project described above is a leading Canadian developer in the multi-family high rise sector with a significant number of projects in various stages of development. For industry competitive purposes the customer will not be named.

Kontrol Technologies Corp.

Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and by reviewing its profile on SEDAR at www.sedar.com

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking statements in this press release include, but are not limited to, statements with respect to the following: entering into of the CDCC contract described in the press release and the timing of completion thereof; completion of the activities contemplated in the LOI and the timing thereof; and the Company’s future business plans and operations.

Where Kontrol expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation: that sufficient capital will be available to the Company and that technology will be as effective as anticipated; that the Company will be able to enter into the CDCC contract described in this press release on the terms and in the timeframe as currently anticipated; that the activities contemplated in the LOI will be completed on the timeframe as currently anticipated; and that the Company’s customers will continue to utilize the Company’s products as currently anticipated.

However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking

statements. Such risks include, but are not limited to the following: that the Company will not enter into the CDCC contract described in this press release on such terms as are currently anticipated, or at all; that the Company may encounter delays in carrying out the activities contemplated in the LOI; that sufficient capital and financing cannot be obtained on reasonable terms, or at all; that the Company’s technologies will not prove as effective as expected; that customers and potential customers will not be as accepting of the Company's product and service offering as expected; and government and regulatory factors impacting the energy conservation industry.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. Kontrol does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220309005407/en/

Kontrol Technologies Corp.

Paul Ghezzi

CEO

info@kontrolcorp.com

180 Jardin Drive, Unit 9, Vaughan, ON L4K 1X8

Tel: (905) 766.0400

Investor Relations:

Brooks Hamilton

MZ Group – MZ North America

KNRLF@mzgroup.us

Tel: +1 (949) 546.6326

Source: Kontrol Technologies Corp.

FAQ

What HVAC project has Kontrol Technologies Corp. announced?

Kontrol Technologies has announced a $9.7 million HVAC and Automation project for a new high-rise building in the Greater Toronto Area.

When is the Kontrol Technologies project expected to start?

The project is anticipated to commence in Q3 2022.

What is the significance of the Letter of Intent signed by Kontrol Technologies?

The Letter of Intent indicates that Kontrol Technologies has secured the HVAC project and is in the process of finalizing the contract.

What are Kontrol Technologies' plans following the recent project award?

Kontrol aims to focus on expanding its recurring revenues and enhancing its building technology and service platform.