TORONTO, Sept. 16, 2016 /CNW/ - Kontrol Energy Corp. (CSE:KNR) (the "Company") announces that it has entered into a Letter of Intent to acquire (the "Proposed Acquisition") a Canadian Energy Consulting company (the "Acquisition Target"). The Acquisition Target is a leader in its field, has been operating in Canada for more than 20 years and services a loyal industrial customer base of profitable large capitalization companies. The Acquisition Target will remain undisclosed as the Letter of Intent is conditional upon the execution of a definitive share purchase agreement.
Based on the unaudited financial statements for 2016 the Acquisition Target had generated approximately $5.5 million of revenue and approximately $950,000 of normalized EBITDA. If the Proposed Acquisition is completed, it will be on a cash basis only and no shares of the Company will be issued. The Proposed Acquisition, if completed, will be accretive to revenue and earnings immediately upon closing.
"We look forward to completing this acquisition in the next 90 days and accelerating our growth plans," says Paul Ghezzi, CEO of the Company. "With the continued increase in electricity rates across North America the need for energy efficiency solutions and technologies continues to grow. Kontrol Energy is excited to deliver a future of innovative energy sustainability solutions for customers and executing on strategic acquisitions for the benefit of our stakeholders."
Kontrol Energy seeks to finance the Proposed Acquisition through its recently announced Debenture and Common Share Unit Offering. The anticipated closing date for the Proposed Acquisition is December 15, 2016.
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. provides 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 complete the Proposed Acquisition, the future earnings of the Acquisition Target not being consistent with past performance and risks associated with the energy efficiency and/or carbon emission measurement and verification sectors 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. Enters into Letter of Intent to Acquire Energy Consulting Company (CNW Group/Kontrol Energy Corp.)". Image available at: http://photos.newswire.ca/images/download/20160916_C4666_PHOTO_EN_774949.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