TORONTO, January 03, 2024--(BUSINESS WIRE)--Kontrol Technologies Corp. (NEO:KNR) (OTCQB:KNRLF) (FSE:1K8) ("Kontrol" or the "Company"), has completed the sale of its operating subsidiary ORTECH Consulting. The sale proceeds are $6.1 Million plus working capital of approximately $600,000, less closing costs.

"As part of our strategic plan for 2024 the Company will focus on business verticals which include equipment and technology sales in the industrial and commercial building sector," says Paul Ghezzi, CEO of Kontrol Technologies. "The sale of our operating subsidiary aligns with the Company’s strategic initiatives and provides us with the flexibility to further reduce debt levels."

As part of the closing the Company will receive $6.1 million in cash less an indemnity holdback of $300,000 to be held in escrow and will collect working capital over a period of approximately 3 months. Prior to the closing of the transaction, the Company held $3.2 million of cash on hand as at December 29, 2023.

"We are pleased to begin 2024 with significant cash on hand, a clear path to improving the balance sheet and a continued strategic focus on recurring and high margin revenue growth," continues Ghezzi.

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.sedar.com

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.