TORONTO--(BUSINESS WIRE)--Kontrol Technologies Corp. (Cboe CA:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol” or the “Company”) provides a corporate update for January 2024.
Completion of High-Temperature Dry Kiln Pilot and Initial Technology Sale
Following the press release dated March 23, 2023, the Company is pleased to announce that it has completed a successful pilot of its new technology solution for the cement industry and has received an initial order from the pilot customer.
"The addressable market potential for this technology spans thousands of global cement plants and specialized industries. Leveraging government funding, the rapid development and deployment underscore our unwavering commitment to innovation in addressing customer challenges around emissions and optimizing facilities,” says Paul Ghezzi, CEO of Kontrol.
The Company has received approximately $130,000 CAD in Government funding to support development and commercialization of the Dry Kiln probe. The pilot customer has purchased the first unit and is exploring applications in its multiple facilities. Each Dry Kiln probe has a sale value of approximately $200,000 USD and includes hardware, software and ongoing monitoring in real-time with rich data analytics. The environmental and process monitoring of emissions is critical in industries, both for production (quality of finished products), reducing green house gases (GHG) and harmful emissions, but also fuel savings which reduces consumption of natural gas, coal, and alternative fuels. Cement plants are one of the major contributors to GHG emissions globally. Enhanced monitoring and management may improve operating efficiency and lead to GHG emission reductions.
Continued Balance Sheet Improvement
As of January 24th, 2024 the Company has reduced its secured debt obligations from approximately $11 Million to $5.5 Million and has approximately $3.2 Million of cash on hand. The Company anticipates that it will receive an additional $1.0 Million from the sale of its operating subsidiary Ortech Consulting which was completed in December, 2023. The $1.0 Million includes customary holdbacks and working capital to be collected in 2024.
“Over the past 12 months we have reduced our secured debt obligations by approximately $10 Million, have significantly improved the balance sheet and continue to operate with fiscal discipline,” continues Ghezzi. “The reduction in debt will also have a corresponding benefit of reducing interest expense by approximately $1 Million annually.”
Forbearance Agreement
The Company is in compliance with its Forbearance Agreement and is working closely with its secured lender to transition from the Forbearance Agreement into a traditional lending agreement. The Company anticipates a transition to a traditional lending agreement in Q1 2024.
Global HVAC
Following a voluntary assignment into bankruptcy of its subsidiary Global HVAC, in Q1 2023, the Company now anticipates a positive recovery in the approximate range of $300,000 after payment of secured claims.
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 at www.sedarplus.ca.
Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
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: the potential benefits of winding up Global; the future operations of the Company; and the Company’s ability to meet its contractual obligations to make payments under the FBA.
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 the Company will have sufficient financial and other resources to fulfil expectations with respect to future operations and meet contractual payment obligations, deliver 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 that demand will continue for continuous emission monitoring technology and the success of the High-Temperature Dry Kiln 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.
