Kontrol Energy (CSE: KNR) (OTCQB: KNRLF) a growing leader in the energy efficiency and smart building sector through IoT, Cloud and SaaS technology announced on January 22nd, that it has the intentions to spin-off one of the company’s wholly owned subsidiary, Efficiency Engineering Inc. (“EEI”). Efficiency Engineering Inc. is a Canadian firm that specializes in industrial, municipal and commercial building owners across Canada. Kontrol Energys’ board of directors have already approved the arrangement and is urging its shareholders to vote in favor of the spin-off in the coming months.
In a recent special update KNR posted on its YouTube channel, CEO Paul Ghezzi stated that shareholders of KNR will receive .7 shares of the new public entity Efficiency Engineering Inc. This means that if an investor owns 100,000 shares of KNR, the investor will receive a total of 70,000 shares of Efficiency Engineering Inc. which is expected to have its independent listing on the Canadian Securities Exchange, commonly referred to as the CSE. We believe this is a great way to reward shareholders early on in KNR as the company continues its path to profitability in 2020.
Something investors should also note, is that on KNR Tweeted on February 6th that “Kontrol SmartSuite technology pilots going well with excited pilot customers. We will be providing pilot updates shortly”.
We believe this is in relation to KNR’s press release dated December 19th 2019 titled “Kontrol launches New Energy Technology” . In the press release, KNR announced that its new energy technology for multi-residential, commercial, hospitality and industrial building market has been in development for over two years and is now certified for the Canadian market. The press release also states that KNR is also in various non-binding negotiations to begin pilots in the United States and is also beginning the process to obtain the required certifications for the US market. Equally important to note is at the bottom of the PR “An update on the pilots will be provided in Q1, 2020 as well as an update on progress of expanding into the USA.”. We believe the tweet may be in relation to the press release dated December 19th and additional details may be released this week or next!
With the upcoming updates from the company we believe investors should keep KNR on their radar as the company approaches to receiving approval from the Canadian Securities Exchange for the Plan of Arrangement. We also think that the share price may rise significantly 3 days to the record date for the spin-off as investors rush to buy in in order to receive the dividend. After all, it’s pretty much risk free as investors will receive almost a whole share (.7) for every share they hold of Kontrol Energy Corp.
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