Kontrol Energy Completes Acquisition of Efficiency Engineering Inc.
TORONTO, August 8, 2017 - Kontrol Energy Corp. (CSE:KNR) (the "Company") announces that it has completed the acquisition of Efficiency Engineering Inc. (“EE Inc.”). EE Inc. has been operating for more than 20 years and provides engineering services to industrial, municipal and commercial building owners across Canada. EE Inc. provides its customers with detailed energy efficiency analysis, energy audits, management of facility system solutions, electrical and mechanical design and energy conservation studies. Based on its unaudited financial statements for the fiscal years 2015, 2016 and 2017, EE Inc. generated average annual revenues of approximately $2.0 million and approximately $450,000 of average annual Net Earnings before tax (EBT).
“We are excited about the closing of this acquisition and we look forward to expanding EE Inc’s unique services and solutions across Canada, and adding further growth to our revenue and earnings. This acquisition provides a strategic fit to enhance our capacity to deliver turn-key energy efficiency solutions for our customers while providing a corresponding reduction in Greenhouse Gas Emissions (GHG)," says Paul Ghezzi, CEO of the Company. "We continue to execute on our business plan to deliver value to our shareholders and investors in a rapidly growing sector of the North American economy.”
The aggregate purchase price for Efficiency Engineering Inc. is $2,230,000, of which the Company has paid $630,000 in cash on closing and $900,000 by way of issuing 1,210,816 million common shares of the Company at a deemed price of $0.7433 per share. An additional $700,000 of the purchase price is subject to a 15 month holdback to accommodate post-closing purchase price adjustment and indemnity obligations of the vendors. Of the aggregate purchase price, $535,000 is comprised of net working capital. The existing skilled operational leadership team will remain in place.
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.
For further information: Paul Ghezzi, CEO firstname.lastname@example.org;
Kontrol Energy Corp. 5045 Orbitor Drive Bldg. 9, Suite 401 Mississauga, ON L4W 4Y4
Tel: 905.766.0400 Toll free: 1.844.866.8123
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Caution Regarding Forward Looking Statements:
Certain information included in this press release, including information relating to the proposed acquisition of solar power generating assets, 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.