Kontrol Technologies Enters into Amended Credit Agreement with Secured Lender

Kontrol Technologies Corp. (Cboe CA:KNR) (OTCQB:KNRLF) (FSE:1K8) ( “Kontrol” or the “Company”) a leader in smart buildings and cities through IoT, Cloud and SaaS technology is pleased to announce that it has entered into an amended credit agreement with its secured lender and exited forbearance.

“A key objective for the Company in 2023 was to strengthen the balance sheet and we have accomplished that by focusing efforts to reduce debt and corresponding interest expense,” says Paul Ghezzi, CEO of Kontrol Technologies. “Our successful de-leveraging has well positioned the Company to execute on strategic initiatives to continue to grow the business.”

The Company entered into an amended credit agreement and exited from forbearance, thereby returning to regular commercial borrowing. Under the terms of the credit agreement, interest is payable at Bank Prime rate plus a margin (between 1.25% and 2.0% based on the Company’s ratio of secured debt to earnings before interest taxes and depreciation) with principal repayments amortized over five years.

The Company started 2023 with approximately $15 million of secured debt and by the end of Q1, 2024 anticipates a secured debt balance of approximately $3.7 million. For 2024 financial reporting, as a result of exiting forbearance, the Company will classify principal obligations on the secured debt which are beyond 12 months as long-term debt on its 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 at www.sedarplus.com

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