Kontrol Energy completes $2.23M acquisition of Efficiency Engineering

News Release

Kontrol Energy Completes Acquisition of Efficiency Engineering Inc.

Kontrol Energy Corp. completes acquisition of Efficiency Engineering Inc. (CNW Group/Kontrol Energy Corp.)

TORONTO, Aug. 8, 2017 /CNW/ – 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.

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

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.