Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES COMPLETES SALE OF OPERATING SUBSIDIARY

Kontrol Technologies Corp. has completed the sale of its operating subsidiary Ortech Consulting. The sale proceeds are $6.1-million plus working capital of approximately $600,000, less closing costs.

"As part of our strategic plan for 2024 the company will focus on business verticals which include equipment and technology sales in the industrial and commercial building sector," says Paul Ghezzi, chief executive officer of Kontrol Technologies. "The sale of our operating subsidiary aligns with the company's strategic initiatives and provides us with the flexibility to further reduce debt levels."

As part of the closing the company will receive $6.1-million in cash less an indemnity holdback of $300,000 to be held in escrow and will collect working capital over a period of approximately three months. Prior to the closing of the transaction, the company held $3.2-million of cash on hand as at Dec. 29, 2023.

"We are pleased to begin 2024 with significant cash on hand, a clear path to improving the balance sheet and a continued strategic focus on recurring and high-margin revenue growth," continues Mr. Ghezzi.

About Kontrol Technologies Corp.

Kontrol Technologies, a Canadian public company, is a leader in smart buildings and cities through Internet of Things, cloud and software-as-a-service technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

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