03 Jan, 2018, 06:30 ET
TORONTO, Jan. 3, 2018 /CNW/ - Kontrol Energy Corp. (CSE:KNR) ("Kontrol" or the "Company") announces that it has entered into a Letter of Intent (LOI) to acquire an energy analytics company (the "Target") which specializes in the application of energy software tools to analyze the management of complex heating, ventilation and cooling systems for large residential, commercial, and mission critical real estate owners. The Target provides real-time operational monitoring and analytics with cloud-based solutions and detailed asset management analytics. With more than 10 years of operating experience and currently installed in over 120 buildings, spanning more than 12 million square feet of real estate, the software and related services are both robust and scalable. "The Target acquisition will facilitate our growth in energy analytics and provide us with access to an existing customer base that aligns with our blockchain technology strategy," says Paul Ghezzi, CEO of Kontrol Energy.
The Target's existing customers include some of Canada's largest owners and managers of large residential, commercial, and mission-critical buildings. The Target generates approximately $1 Million of annual revenue with normalized EBITDA of 20%. Approximately 60% of the revenue is annual recurring revenue. The transaction will be structured as an asset purchase.
"Our blockchain technology solution, for the energy and carbon markets, includes decentralized, secure contracts to clear physical and financial markets, automating dispatch of energy load, power generation and storage. Demand response capability, wholesale market trading and eventually fully distributed micro-grids will follow. Further, for each kilowatt of energy saved, a corresponding value of carbon can be measured, verified and monetized," continues Paul Ghezzi.
The purchase price for the Target is $1 million, subject to closing adjustments. No common shares of Kontrol will be issued as part of the transaction. The transaction is anticipated to close by March 31, 2018 subject to due diligence, regulatory approvals and satisfaction of closing conditions.
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 Greenhouse Gas (GHG) emissions.
Additional information about Kontrol Energy Corp. can be found on its website at www.kontrolenergy.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.
Caution Regarding Forward Looking Statements:
Certain information included in this press release, including information relating to the proposed acquisition of solar power generating assets, future annual recurring revenue an EBITDA, payments of holdback amounts, possible future acquisitions, anticipated consolidated revenue; the provision of solutions to customers to reduce overall energy costs and greenhouse gas emissions reductions, growth strategy, and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements". The forward-looking statements in this press release are presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief are based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that the acquisition will be successfully integrated into the Company and that its revenues will be consistent with the Company's expectations, that suitable businesses and technologies for acquisition and/or investment will be available, that such acquisitions and or investment transactions will be concluded, that sufficient capital will be available to the Company, that technology will be as effective as anticipated, that organic growth will occur, and others. 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, failure of the parties to the acquisition to fulfill closing conditions, lack of acquisition and investment opportunities or that such opportunities may not be concluded on reasonable terms, or at all, that sufficient capital and financing cannot be obtained on reasonable terms, or at all, that 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 the Company 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, except as required under applicable securities law.
SOURCE Kontrol Energy Corp.
For further information: Paul Ghezzi, CEO, [email protected]; Kontrol Energy Corp., 180 Jardin Drive, Unit 9, Vaughan, ON L4K 1X8 Tel: 905.766.0400, Toll free: 1.844.866.8123
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