Kontrol Technologies Completes Sale of Operating Subsidiary

Rhea-AI Summary

Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) has completed the sale of its operating subsidiary ORTECH Consulting for $6.1 Million plus working capital of approximately $600,000, less closing costs. The sale aligns with the Company’s strategic plan for 2024 to focus on equipment and technology sales in the industrial and commercial building sector. The Company will receive $6.1 million in cash less an indemnity holdback of $300,000 and will collect working capital over a period of approximately 3 months. Kontrol Technologies Corp. begins 2024 with significant cash on hand, a clear path to improving the balance sheet, and a continued strategic focus on recurring and high margin revenue growth.

TORONTO--(BUSINESS WIRE)-- Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol” or the “Company”), has completed the sale of its operating subsidiary ORTECH Consulting. The sale proceeds are $6.1 Million plus working capital of approximately $600,000, less closing costs.

“As part of our strategic plan for 2024 the Company will focus on business verticals which include equipment and technology sales in the industrial and commercial building sector,” says Paul Ghezzi, CEO of Kontrol Technologies. “The sale of our operating subsidiary aligns with the Company’s strategic initiatives and provides us with the flexibility to further reduce debt levels.”

As part of the closing the Company will receive $6.1 million in cash less an indemnity holdback of $300,000 to be held in escrow and will collect working capital over a period of approximately 3 months. Prior to the closing of the transaction, the Company held $3.2 million of cash on hand as at December 29, 2023.

“We are pleased to begin 2024 with significant cash on hand, a clear path to improving the balance sheet and a continued strategic focus on recurring and high margin revenue growth,” continues Ghezzi.

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 information contained in this press releases includes, but is not limited to, the following: the potential benefits of winding up Global; the future operations of the Company; and the Company’s ability to meet its contractual obligations to make payments under the FBA.

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 the Company will have sufficient financial and other resources to fulfil expectations with respect to future operations and meet contractual payment obligations.

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/20240103931924/en/

Kontrol Technologies Corp.

Paul Ghezzi

CEO

info@kontrolcorp.com

11 CiderMill Road

Vaughan, ON L4K 4B6

Tel: (905) 766.0400

Source: Kontrol Technologies Corp.

FAQ

What is the company name and ticker symbol for Kontrol Technologies Corp.?

The company name is Kontrol Technologies Corp. and the ticker symbols are NEO:KNR, OTCQB:KNRLF, and FSE:1K8.

What was the sale amount for the operating subsidiary ORTECH Consulting?

The sale proceeds were $6.1 Million plus working capital of approximately $600,000, less closing costs.

What is the Company’s strategic focus for 2024?

The Company’s strategic focus for 2024 is on equipment and technology sales in the industrial and commercial building sector.

How much cash will the Company receive from the sale?

The Company will receive $6.1 million in cash less an indemnity holdback of $300,000.

How does Kontrol Technologies Corp. plan to begin 2024?

Kontrol Technologies Corp. plans to begin 2024 with significant cash on hand, a clear path to improving the balance sheet, and a continued strategic focus on recurring and high margin revenue growth.