This week, Kontrol Energy (CSE: KNR) (OTCQB: KNRLF) has announced that the company has closed its first tranche of its non-brokered private placement for a total of CAD $1,250,000, and the second tranche of its private placement is scheduled to be completed by next Tuesday June 30th ,2020.
Kontrol Energy has also provided an update to its recent planned acquisition of an unnamed building energy and equipment monitoring company. In it’s recent private placement press release, KNR has highlighted that it will be closing the acquisition on Monday July 6th 2020.
According to the energy company’s July 31st 2019 fiscal year unaudited financial statements, the unnamed company has generated $3.7 Million of revenue and $843,000 of Net Income before tax, and approximately 40% of its revenues are expected to be recurring revenues on an annual basis. Kontrol Energy will be acquiring the unnamed energy company for $2,700,000 which will be in the form of $1,550,000 in cash and $750,000 in a unsecured vendor take-back loan with a 3.5% compounding interest rate and KNR will be issuing 727,272 shares at a price of $.55 cents per share, up 10 cents from the current price.
Shares of KNR have been basing steadily around the $0.40 cent range since early May and KNR has recovered from the low $.20s as all company’s saw their share price take a hit due to the Corona virus.
With the closing of its private placement and the closing of the acquisition of the unnamed energy company on July 6th, these develpoments should act as a great catalyst to break above the 200 SMA at $.50 cents per share.
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in this article has been furnished for your information only, is accurate at the time of posting, and may be superseded by more current information.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 EquityInsight.ca. Directors of the parent company of Equity Insight may buy, hold or sell the securities before during or after this publication