Kontrol Energy and Toyota Tsusho Canada Inc. Announce a Smart Factory Strategic Partnership for North American Markets
TORONTO, ON, March 25, 2019 / Kontrol Energy Corp. (CSE: KNR, OTCQB: KNRLF, FSE: 1K8) (the "Company" or "Kontrol") and Toyota Tsusho Canada Inc. 'TTCI' are pleased to announce they have signed an agreement to implement Smart Factory technology solutions combining Kontrol's Internet of Things (IoT) hardware and software solutions with TTCI's existing production, operating improvement platforms, and power generation / HVAC products for the North American automobile and parts OEMs.
"We are pleased to enter a significant new vertical market opportunity with a strong global partner in TTCI," said Paul Ghezzi, CEO of Kontrol Energy Corp. "Working in partnership with a global industrial leader such as Toyota Tsusho also provides us with an opportunity to scale our technology solutions across a large potential global customer base."
"We selected Kontrol as our partner in the Smart Factory initiatives due to their extensive experience in developing technology solutions which integrate IoT hardware and software to create a smart environment to optimize operating efficiencies. This agreement with Kontrol will enable us to deliver production and energy efficiencies and give our customers a technology solution to drive down their costs and gain a competitive advantage,'' commented Mr. Hidetoshi Tada, President of TTCI.
Under the agreement, Kontrol and TTCI intend to establish a joint venture company to provide technology solutions and services to OEMs in the automotive sector to optimize production and manage energy in real-time. A focus on optimizing production and energy management to improve operating efficiencies and reduce operating costs through digitization, real-time data analysis and machine learning will provide global OEMs with a compelling integrated solution. More specifically, Kontrol will design and provide monitoring software, quality assurance and technical support to TTCI and its customers, and design and install building automation systems and heating and ventilation equipment, while TTCI will procure customers, conduct engineering and installation and after-sales services with customers. The agreement does not prescribe specific timelines or milestones or revenues, but initial pilots are expected to begin in April 2019, with the goal of scaling the offering across North America in 2019. Any profits from the joint venture would be shared between Kontrol and TTCI on a pro rata basis based on services provided by each of Kontrol and TTCI. A more comprehensive news release will be issued once the pilot phase is complete and a definitive agreement is signed.
According to MarketsandMarkets.com, the smart factory market is expected to reach USD 358.01 Billion by 2023. Smart factory refers to various fully-integrated automation solutions adopted for manufacturing facilities. A fully optimized factory can provide a competitive advantage to OEMs seeking to reduce their overall operating costs and improve their profitability.
About Toyota Tsusho Corporation
TTCI is a wholly owned subsidiary of Toyota Tsusho America, Inc. and operates with approximately $1 Billion in annual revenues. The ultimate parent company of TTCI is Toyota Tsusho Corporation, the trading affiliate of the Toyota Group of Companies. Toyota Tsusho Corporation ("TTC") was founded in 1948 as the trading company for the Toyota Group. Today, TTC is a highly diversified company with seven operating divisions and more than 1,000 subsidiaries and affiliated companies. The TTC group of companies engage in various business enterprises in more than 120 countries and employ approximately 58,000 members worldwide, all striving to contribute to the creation of prosperous societies.
About Kontrol Energy
Kontrol Energy Corp. (CSE: KNR) (OTCQB: KNRLF) (FSE: 1K8) is a leader in the energy efficiency sector through IoT, Cloud and SaaS technology. With 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.
Kontrol Energy was recently announced as the 7th fastest growing Startup in Canada by Canadian Business and Maclean's.
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Certain information included in this press release, including information relating to expansion of the Company's acquisition targets into the US market; the intent to accelerate the Company's US sales and market presence as part of its strategic plan; the integration of the target(s) into Kontrol's existing businesses and technology across Kontrol's operating platform; strategic synergies to distribute smart building technologies and the opportunity to vertically integrate across a broader operating platform, Kontrol's anticipated growth in scale and revenue, including anticipated proforma 2019 revenue and EBITDA run rate, or revenue share price; the provision of solutions to customers to reduce overall energy costs and greenhouse gas emissions reductions, carbon reduction and monetization programs, 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 purposes 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 target(s) will be successfully integrated into the Company and that its revenues and growth projections will be consistent and meet with the Company's expectations, that the revenue and EBITDA run rate of the target(s) and the Company's subsidiaries will be consistent with and meet the Company's expectations, that performance milestones will be achieved, 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, that the Company will succeed in completing its proposed financing, that all conditions precedent to the acquisition of the target(s) will be met within the required timeframes, 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, that the target(s) will not be successfully integrated or will not perform as expected, that the revenue and EBITDA run rate of the target and the company's subsidiaries will be less than expected, performance milestones will not be achieved, there being a 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 and emission monitoring solutions will not prove as effective as expected that customers and potential customers will not be as accepting of the Company's (including the target's) product and service offering as expected. 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.