Hello Paul, and welcome back! It has been quite some time since we have last spoke, and there have been several developments from Kontrol that are worth noting and we’re excited to have you back!
- 1) Kontrol Energy recently completed its second major pilot with Toyota Tsusho, and in this press release, its stated that discussions have started to expand to 12 larger facilities in the United States. What could you tell us about this expansion, and what does this mean in terms of revenue for the Company?
We view Toyota as a strong long-term customer. Every facility we work on has the potential to be worth 1 Million in technology and solution deployment. Like most industrial customers we must work within the context of an annual capital budget so that the potential revenues are earned over a multi-year period. We will be in a position to announce more Toyota developments in Q1.
- 2) Congratulations on Kontrols’ recent nomination in ranking 40th on the 2019 Startup 50 ranking of Canada’s Top New Growth Companies. This is the second year in a row Kontrol has been recognized by Canadian Business. In your opinion, what were key factors for KNR being listed in Canadian Business two years running?
We have been rapidly growing our revenues and expanding our business. We are pleased to be recognized for our growth but have much more we want to do. In addition to completed acquisitions we have been able to achieve above 20 percent organic growth.
- 3) KNR has entered into a letter of intent to acquire a Canadian electrical retrofit company, and with the recent completion of its secured loan financing, does the Company anticipate in closing this acquisition by the end of 2019?
We continue to work on the acquisition. The Vendor is required to deliver year-end financial statements. Often times, private companies being acquired can take a little longer to meet the requirements of public company. We will be in a position to provide an update in Q1.
- 4) Recently Kontrol has entered into a letter of understanding (LOU) with a new regional partner named Zedan Group in Saudia Arabia. Could you provide us in a bit more detail about this partnership and what it means for the company?
The partnership with Zedan involves Kontrol supplying our technology and solutions across the Zedan customer base which includes companies such as Saudi Aramco. We believe that there is great potential in the region, and with Zedan having a regional presence, a strong local partner is the better strategy.
- 5) On December 19th, 2019, Kontrol announced that it has launched new energy technology in regards to its SmartSuite solution. Could you please explain to us what this mean for the company and what the company expects to generate in revenue from its SaaS operations?
We have launched our new energy management device smart suite which is designed to provide deep energy savings in hotels, apartment buildings retail buildings. Similar to a google nest technology but not for homes. Our market is the commercial and industrial sector. We use our propriety software, hardware and cloud technology to manage heating and cooling in real time. Following the pilots, we will provide a market update in Q1
- 6) In late November, Kontrol had announced that it has completed a successful pilot with a global leading Plant-based Meat Substitute company, and it was stated that KNR would be able to announce this global leader. This is still a possibility in the near term? And furthermore, can shareholders expect to see more orders from this global leader in the coming months?
We will be updating the market shortly on this exciting customer. At that time, we will announce the customer name and we anticipate in adding more globally branded customers in 2020.
- 7) An email we received from an investor is a two-pronged question. First, they would like to know “what are your best seller type of contracts?”. The second question is “what is the prime objective of your clients when they call on your services?”.
Our customers engage us to improve their buildings and facilities through technology. This includes energy, process and production improvement and emission compliance. Currently 10% of our revenues are software as a service and we anticipate that to grow and the balance is integrating implements to the various facilities. We are most excited about our software as a service platform and our recent new commercial smart thermostat launch.
- 8) A second email we received asked, “it was previously stated that Kontrol Energy has intentions of listing its shares on the Toronto Stock Exchange. Does Kontrol still intend on up listing its shares and is this something we may see in 2020?”
We plan to uplift in 2020 based on meeting the criteria of the TSX big board and we also have our eye on the Nasdaq in 2021.
- 9) Finally, what can investors expect from Kontrol Energy going forward as 2019 comes to an end and what awaits shareholders going into 2020?
We will be adding new customers who are global leading brands and expanding our USA business. We want to continue to show we can grow at a very strong organic growth rate and we want to continue to be recognized as a Canadian leader in our sector.
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