“We are pleased with our progress and continued execution of our key strategic objectives for 2023,” stated Paul Ghezzi, CEO Kontrol Technologies. “Ongoing cost reductions combined with organic growth have brought us to positive net income from continued operations ahead of schedule. We continue to make good progress in deleveraging and right sizing the balance sheet. The Company has entered new growth markets in our emission analyzer business and will continue to scale into these markets as we head into 2024.”
Consolidation and Rebranding to Kontrol Building Solutions
The Company’s operations in the commercial building sector will be consolidated and rebranded into Kontrol Buildings as of January, 2024. As part of the consolidation a unified platform delivering HVAC, air quality and real-time energy monitoring will be established. Under the rebranding the Company will continue to execute on its successful cost rationalizations as well as integrate all of the Company’s building solutions and technologies under one brand.
The Company will seek to expand its regulated emission business and will continue to operate under the well recognized brand of CEM Specialities Inc. The Company’s emission platform has been expanding its offerings to include the regulated Ethylene oxide market. Ethylene oxide (EtO or EO) is widely used across various industries for the production of solvents, detergents, adhesives, antifreeze, textiles, and pharmaceuticals. Ethylene oxide is also present in sterility for cosmetics, fumigants, and hospitals for sterility of surgical equipment.
Letter of Intent to Sell Operating Subsidiary
The Company has entered into a Letter of Intent to sell its wholly owned operating subsidiary Ortech Consulting for approximately $6.6 Million CAD. The Acquiror is a large USA integrator of environmental consulting companies. The transaction is anticipated to close prior to December 31, 2023 and is subject to customary approvals and documentation which includes the completion of an Asset Purchase Agreement. Proceeds from the proposed sale would have an immediate impact in further accelerating the right-sizing of the Company’s balance sheet.
Kontrol Technologies Corp.
Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings. Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and by reviewing its profile on SEDAR.
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking information contained in this press releases includes, but is not limited to, the following: future emission monitoring solutions and products to be offered by Kontrol for its potential customers; that the future success of any of Kontrol’s products; and customer demand relating to continuous emissions. Where Kontrol expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that sufficient capital will be available to the Company; that the anticipated timing of implementing continuous emission monitoring solutions for Customers will go as planned; and that demand will continue for continuous emission monitoring technology and for the Company’s products in particular. 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 are based on the beliefs, estimates, expectations, and opinions of management on such date. Kontrol 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 or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.