Kontrol Technologies Enters into Amended Credit Agreement with Secured Lender
- Kontrol Technologies Corp. successfully reduced its debt and interest expenses.
- The company entered into an amended credit agreement and exited forbearance, allowing for regular commercial borrowing.
- Interest payable under the new credit agreement is based on Bank Prime rate plus a margin.
- Principal repayments will be amortized over five years, with a significant reduction in secured debt anticipated by the end of Q1, 2024.
- Exiting forbearance will result in classifying principal obligations on secured debt as long-term debt for 2024 financial reporting.
- None.
“A key objective for the Company in 2023 was to strengthen the balance sheet and we have accomplished that by focusing efforts to reduce debt and corresponding interest expense,” says Paul Ghezzi, CEO of Kontrol Technologies. “Our successful de-leveraging has well positioned the Company to execute on strategic initiatives to continue to grow the business.”
The Company entered into an amended credit agreement and exited from forbearance, thereby returning to regular commercial borrowing. Under the terms of the credit agreement, interest is payable at Bank Prime rate plus a margin (between
The Company started 2023 with approximately
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.sedarplus.com
Neither CIRO 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.
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.
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, that sufficient capital and financing cannot be obtained on reasonable terms, or at all; that those technologies will not prove as effective as expected; those 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/20240328059811/en/
Kontrol Technologies Corp.
Paul Ghezzi, CEO
info@kontrolcorp.com
11 Cidermill Avenue, Suite 201
Tel: (905) 766.0400
Source: Kontrol Technologies Corp.
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