TORONTO, ON / ACCESSWIRE / October 31, 2019 / Kontrol Energy Corp. (CSE:KNR, OTCQB:KNRLF, FSE:1K8) ("Kontrol" or "Company") a leader in the energy efficiency sector through IoT, Cloud and SaaS technology is pleased to announce that it has completed a $3 Million secured loan financing (the "Loan") with FirePower Capital (the "Lender") on October 30th, 2019. The indicative terms of the loan were initially announced on August 9th, 2019.
The Loan refinances existing debt, providing incremental increased funding capacity and converts approximately $3,000,000 of Kontrol's existing short-term debt into a long-term obligation. The Loan has a three-year term, Bankers' Acceptance rate plus 8% interest, a facility fee, and will be interest only over the first 18 months, with monthly principal repayment beginning thereafter. The Lender will be granted 590,293 common share purchase warrants ("Lender Warrants") with an exercise price of 0.72 cents and a term of five years.
The Company has also reduced the warrant exercise price of 750,000 previously issued common share purchase warrants issued in conjunction with a prior secured loan on September 20, 2018 ("Prior Lender Warrants"). The exercise price has been reduced from 0.75 cents to 0.70 cents. All other warrant terms remain unchanged.
Kontrol also announces that it will not complete any more closings of its convertible debenture offering, initially announced on June 14th, 2019. A total of $1.3 Million was raised from the sale of convertible debentures.
"These financings position our balance sheet for new acquisitions and growth while limiting dilution in our common share structure," says Paul Ghezzi, CEO of Kontrol Energy.
Acquisition Update
Further to Kontrol's news releases of March 14th, 2019 and September 3rd, 2019, regarding the Company's intention to acquire an established and leading provider of electrical retrofit services (the "Target"), the parties continue to work towards that goal. The Target recently completed its 2019 fiscal year end and is expected to provide Kontrol with financial statements prior to December 31st, 2019. Closing of the acquisition is subject to entering into a definitive purchase agreement and the satisfaction of customary conditions, including the approval of the CSE.
New Board of Director Member
Kontrol is pleased to announce that Mr. Ernest Belyea is joining the Board of Kontrol as an Independent Board Member. Mr. Belyea is a lawyer with a long history of working in the Electricity and Power Generation sector, was formerly in-house counsel to the Ontario Power Authority (now IESO) and a partner at two of Canada's leading international law firms. Mr. Belyea is currently the CEO of Purus Power which has developed a patented proprietary platform technology that converts the variable flow of air, water or other mediums into electricity and mechanical power.
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 is one of Canada's fastest growing companies in 2018 and 2019 as ranked by Canadian Business and Maclean's.
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
About FirePower Capital
FirePower Capital is the M&A advisory and private capital firm built for Canada's entrepreneurs. Our team of 30+ deal professionals helps their mid-market businesses complete mission-critical transactions, by advising them or investing in their companies directly. https://www.firepowercapital.com
For further information, contact:
Paul Ghezzi, Chief Executive Officer
[email protected]
Kontrol Energy Corp.,
180 Jardin Drive, Unit 9, Vaughan, ON L4K 1X8
Tel: 905.766.0400, Toll free: 1.844.566.8123
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Information
Certain information included in this press release, including information relating to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute "forward-looking statements". Such forward-looking statements include, without limitation, statements regarding possible future acquisitions, organic growth, the provision of solutions to customers and Greenhouse Gas emissions reductions, proposed financial savings and sustainable energy benefits and energy monitoring. 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 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, 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.