Kontrol Technologies Completes Sale Of Operating Subsidiary

Kontrol Technologies Corp. recently finalized the sale of its subsidiary ORTECH Consulting, resulting in a $6.1 million cash infusion and about $600,000 in working capital after closing expenditures. This strategic move is part of their 2024 plan, which includes a focus on specific business verticals in the industrial and commercial building sectors. Kontrol Technologies CEO Paul Ghezzi noted this decision as aligning with their strategic ambitions while providing flexibility to reduce debt levels.

The conclusion of this sale provides the corporation with significant financial reserves, which are bolstered by $3.2 million held prior to the deal. The transaction structure includes a $300,000 indemnification holdback in escrow, with the remaining operating capital expected to be collected over the next three months.

Ghezzi also highlighted their strategic view for the year, highlighting the importance of a stronger financial position at the start of 2024. Kontrol Technologies Corp., a publicly traded company in Canada, specializing in smart building and city technologies that use IoT, Cloud, and SaaS solutions. Their primary goal remains to empower clients by improving energy management, continuous emissions monitoring, and overall building sustainability. This change enables them to shift toward recurring revenue models, aiming for higher margins and long-term growth.

In essence, this strategic transaction underscores Kontrol's commitment to streamlining operations, strengthening financial stability, and refocusing on core sectors that offer long-term growth and innovation in the smart building and IoT landscape.

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