Kontrol Technologies Provides Corporate Update

Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol” or the “Company”), provides a corporate update on its progress towards its 2023 strategic objectives.

“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.

Emissions Business

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.