Kontrol Energy Corp. (CSE: KNR) (OTCQB: KNRLF) (FSE: 1K8) Bursting into US Energy Efficiency Market with Joint Venture, Acquisition Activity

• Kontrol Energy Corp. is entering a joint venture with a Toyota Tsusho subsidiary to build technological efficiency solutions for automotive industry production
• The joint venture with Toyota Tsusho Canada Inc. expects to launch pilot operations in April
• Kontrol recently announced its entry into the asset and facilities management industry thanks largely to its acquisition of the SmartSite SAAS platform
• The company also recently announced its seventh smart industry acquisition, noting that it expects its first such acquisition in the United States by the end of the year
• The smart factory market is expected to grow at a CAGR of 9.76 percent to $244.8 billion in revenues by 2024

Smart energy efficiency platform developer Kontrol Energy Corp. (CSE: KNR) (OTCQB: KNRLF) (FSE: 1K8) is building a presence in the U.S. market with a burst of activity that befits its core fundamentals for directing energy where it can be best used to greater gain. The Ontario, Canada-based disruptive digital tech company is attuning the power of its IoT product base to the automotive industry through a planned joint venture with Toyota Tsusho Canada Inc. (“TTCI”) that is expected to scale across North America on the heels of Kontrol’s announced entry into the global asset and facilities management industry and expansion of its acquisition targets into the U.S. market.

“We are pleased to enter a significant new vertical market opportunity with a strong global partner in TTCI,” Kontrol CEO Paul Ghezzi stated in announcing the joint venture company on March 25 (http://nnw.fm/wyX46). “Working in partnership with a global industrial leader such as Toyota Tsusho also provides us with an opportunity to scale our technology solutions across a large potential global customer base.”

The agreement is to create a company that provides technological solutions and services to Original Equipment Manufacturer (OEM) clients in the automotive sector to help them get the most efficiency from their production and to manage energy use in real-time, integrating digitization, real-time data analysis and machine learning.

Under the agreement, which is expected to launch pilots in April, Kontrol will design and provide monitoring software, quality assurance and technical support to Toyota Tsusho and its customers. Kontrol will also design and install building automation systems and heating and ventilation equipment. TTCI, for its part, will obtain customers, conduct engineering and installation and provide after-sales services to customers.

TTCI is a wholly owned subsidiary of Toyota Tsusho America Inc. and operates with about $1 billion in annual revenues. The company’s ultimate parent entity is Toyota Tsusho Corp., which was founded in 1948 as the trading company for the Toyota Group of automobiles.

Analysts at markets research firm Markets and Markets predict that the smart factory market, which focuses on the technologies and methods being developed to improve end-user industry production, will grow at a CAGR of 9.76 percent from $153.7 billion this year to $244.8 billion by 2024 (http://nnw.fm/UuC4j), highlighting the profit potential of the joint venture.

On March 18, Kontrol announced its entry into the asset and facilities management industry, stating that the company has been actively developing smart-learning and predictive intelligence enhancements since acquiring the SmartSite software as a service platform last year (http://nnw.fm/zfR5j).

“Through thousands of connected devices spread across an entire facility with each device reporting in real-time our Customers gain immediate visibility over the work environment to improve decision making and address operational efficiencies,” Ghezzi stated in a news release. “Predictive maintenance and real-time management of equipment, energy assets and facilities is a rapidly growing global market which will be part of our organic growth in 2019 and beyond… We are pleased to start working with organizations that manage millions of square feet of commercial and industrial facilities.”

Kontrol is targeting companies with operations relating to building automation systems, the internet of things and the HVAC technology sector for acquisition, and it announced an LOI for its seventh such acquisition on March 14 while also stating that it will now turn its focus to acquiring similar companies in the United States (http://nnw.fm/aHu0W).

“Through our wholly owned subsidiaries, Kontrol already has a presence in the U.S. along with a growing customer base,” Ghezzi stated (http://nnw.fm/2RYyx). “Accelerating our U.S. sales and market presence is part of our strategic plan for 2019 and will undoubtedly provide us the opportunity to grow exponentially.”

Ghezzi said that the company expects to make its first U.S. acquisitions by the end of this year. The company states that it has been able to use a combination of debt and equity to complete accretive acquisitions while minimizing common shareholder dilution. Target acquisitions must have at least half of their annual revenues as recurring income and have an established large cap customer base that will have “cross revenue synergies,” as Ghezzi noted.

For more information, visit the company’s website at www.KontrolEnergy.com

NOTE TO INVESTORS: The latest news and updates relating to KNRLF are available in the company’s newsroom at http://nnw.fm/KNRLF

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