Kontrol Energy (CSE: KNR) (OCTQB: KNRLF) is a rapidly growing company in both Canada and in the United States as the company has partnership with large entities such as Beyond Meat and Toyota Tsusho, the operating right arm of Toyota, and most notably is their recent expansion of operations in Europe!
In late April, KNR announced that due to the increase in market demand of energy reduction, KNR has introduced a white label solution of Kontrol’s energy management software known as its SmartSite platform to Original Equipment Manufacturers (OEMs). This white label solution KNR is providing will allow OEM’s to implement its technology and drive new sales to its existing customer base. CEO of KNR stated "Kontrol's platform allows multiple products with different protocols and disparate sources of communication to be integrated seamlessly to drive the end customer solution”.
Shortly thereafter, Kontrol announced on May 13 that the company as initiated two pilots with one of Europe’s leading OEM in the (HVAC) industry and the pilots are set to take place in Germany and Bolivia in May. The unnamed European OEM has more then 20,000 sites around the world and its HVAC systems have been installed in hotels, schools, office towers, hospitals, government buildings and universities.
In addition to furthering its operations in Europe, KNR has begun CE certification for its SmartSuite technology. This CE certification is a must have for any company who is looking to sell a product in Europe as the CE marking is the certification that demonstrates that the product is in compliance of the health, safety and environmental standards within the European Economic Area (EEA). This comes after KNR receiving its UL certification which will enable KNR to distribute its products to customers in North America. We believe that the rush to obtain CE certification in Europe is in direct response to the positive developments with the OEM, and we expect that KNR is in a great position to secure contracts in the coming months.
Furthermore, to recent developments, shares of KNR were halted on Thursday as the company announced it has signed a definitive share purchase agreement for an acquisition which was previously announced on May 19th. The planned acquisition is of an unnamed building energy and equipment monitoring company and has provided its energy solutions to more then 100 buildings which covers over 25 million square feet and has generated over $3.7 million in revenues and $843,000 of Net Income before tax as per its July 31st 2019 fiscal year. In relation to this acquisition, KNR has also increased its recent financing from $1.5 million to $2 million in the form of a convertible debenture. The acquisition of the energy company is expected to be completed by June 20th, 2020 and investors should keep a close eye on these developments as the closing of an accretive acquisition will be sure to increase shares of KNR.
Forward Looking Statements: This article may contain "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections as of the date of the content is published on this website. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify these forward- looking statements. Information in this article has been furnished for your information only, is accurate at the time of posting, and may be superseded by more current information. Except as required by law, we do not undertake any obligation to update the information, whether as a result of new information, future events or otherwise. This article should not be considered as personal financial advice. Full Disclosure: None of the companies mentioned in the article are not clients of the parent company of EquityInsight.ca Directors of the parent company of Equity Insight may buy, hold or sell the securities before during or after this publication.