Shares of Kontrol Energy (CSE: KNR) (OTCQB: KNRLF) soared 34% as shares hit $.86 cents in early morning trading from the close of $.64 cents from the previous trading day. Shares of KNR moved on significant news relating to Covid-19. On August 5th 2020, Kontrol Energy announced that the company has received approval from the National Research Council of Canada for a $50,000 government grant as to accelerate its new Covid-19 testing technology, called the Kontrol BioCloud analyzer. CEO of KNR, Mr. Paul Ghezzi was quoted "Our team has been working to bring BioCloud to market since the onset of COVID-19 and we see a great need for a technology which can provide a level of assurance that spaces where individuals work and congregate can be safe,". Mr. Ghezzi further stated, "If successful, BioCloud will be able to provide pro-active virus detection capabilities with an alert and notification system in public settings and to help maintain confidence as economies re-open”. This is a big step forward for KNR as the company will be addressing a large need in an ever-changing world with Covid-19.
As economies begin to open again and people begin to congregate indoors whether at the gym or office, air filtration will play a big role in virus detection and air born pathogens. Kontrol will be conducting lab testing over the next four weeks, which following the completion of the testing, KNR will announce the results from the testing of its BioCloud technology. If successful, the company will announce details on its strategy to market its BioCloud analyzer, which it plans to launch in buildings, schools, hospitals, transportation, and other facilities where people congregate. We believe KNR will announce positive testing results for its BioCloud analyzer and investors can expect to see shares pushed higher once positive testing is later announced!
Furthermore, on August 04th 2020, KNR announced that the company has completed its recent planned acquisition and the company has acquired energy solutions company New Found Air. Kontrol acquired 100% of the issued and outstanding shares of New Found Air for a total of $2.7 Million, which was paid in the form of Cash, Vendor take back loan and 727,272 shares at $.55 cents. According to recent reports, New Found Air generated $3.7 Million annual revenue for the period ending July 31st 2019, and if add these revenues to the KNR’s previously announced full year revenues of $14.6 Million, this would give KNR annual revenues of $18.3 Million!
Investors should keep a close eye on KNR, as more positive developments will come forth on air testing developments, as well as more increased revenues on its future earnings report will send shares of KNR higher and we believe KNR to still be undervalued as it does not even trade above 1.5X sales!
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