TORONTO, Sept. 6, 2016 /CNW/ - Kontrol Energy Corp. (CSE:KNR) (the "Company") announces an increase to and completion of its previously announced non-brokered private placement of units (the "Units"). The Units were offered at a price of $0.20, with each Unit consisting of one common share and one-half of one common share purchase warrant. The offering size was increased from one million five hundred thousand (1,500,000) Units to one million six hundred thousand (1,600,000) resulting in gross proceeds of three hundred and twenty thousand dollars ($320,000).
Each whole warrant will be exercisable to acquire one common share of the Company at a price of $0.30 for a period of one (1) year, subject to accelerated expiry should the common shares trade on the Canadian Securities Exchange (the "CSE") at $0.50 or higher for ten (10) consecutive trading days.
Two directors and one senior officer of the Company (the "Interested Persons") subscribed for an aggregate of 550,000 Units under the offering for aggregate cash consideration of $110,000. The participation of these parties in the offering constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(b) and 5.7(b) of MI 61-101. The Interested Persons have no knowledge of any material information concerning the Company or its securities that has not generally been disclosed. As a result of the offering, the combined direct and indirect voting interest of the Interested Persons is 5.9%.
Proceeds from the Offering will be used for working capital. All securities purchased under this Offering will be subject to a four month and one-day hold period. Finders' fees may be payable on a portion of the Offering, in accordance with the policies of the CSE.
About Kontrol Energy Corp.
Kontrol Energy Corp. (CSE:KNR) is a leader in energy efficiency solutions and technology. Through a disciplined mergers and acquisition strategy, combined with organic growth, Kontrol Energy Corp. intends to provide market-based energy solutions to our customers designed to reduce their overall cost of energy while providing a corresponding reduction in Green House Gas (GHG) emissions.
Through our Energy Savings Simplified Program® customers can gain immediate financial savings and the ability to monitor and modify energy consumption and demand in real-time through cloud based IoT solutions. To learn more about Kontrol Energy Corp., please visit the Company's website at www.kontrolenergy.com.
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
This news release includes certain forward-looking statements, which may include, but are not limited to, the completion of financing transactions and the provision of energy solutions to customers. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "will", "anticipate", "believe", "plan", "estimate", "expect", "intend", "propose" and similar expressions. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, failure to raise the full Offering amount, failure to obtain CSE approval for the transactions described herein, and risks associated with the energy efficiency sector generally. The Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.
SOURCE Kontrol Energy Corp.
Image with caption: "Kontrol Energy Corp. Completes Private Placement (CNW Group/Kontrol Energy Corp.)". Image available at: http://photos.newswire.ca/images/download/20160906_C3682_PHOTO_EN_766435.jpg
For further information: Paul Ghezzi, CEO, [email protected]; Kontrol Energy Corp., 5045 Orbitor Drive, Bldg. 9, Suite 401, Mississauga, ON L4W 4Y4, Tel: 905.766.0400, Toll free: 1.844.866.8123