Mr. Paul Ghezzi reports

KONTROL TECHNOLOGIES ENTERS INTO AMENDED CREDIT AGREEMENT WITH SECURED LENDER

Kontrol Technologies Corp. has entered into an amended credit agreement with its secured lender and exited forbearance.

"A key objective for the company in 2023 was to strengthen the balance sheet, and we have accomplished that by focusing efforts to reduce debt and corresponding interest expense," says Paul Ghezzi, chief executive officer of Kontrol Technologies. "Our successful deleveraging has well positioned the company to execute on strategic initiatives to continue to grow the business."

The company entered into an amended credit agreement and exited from forbearance, thereby returning to regular commercial borrowing. Under the terms of the credit agreement, interest is payable at bank prime rate plus a margin (between 1.25 per cent and 2 per cent based on the company's ratio of secured debt to earnings before interest, taxes and depreciation) with principal repayments amortized over five years.

The company started 2023 with approximately $15-million of secured debt and, by the end of Q1 2024, anticipates a secured debt balance of approximately $3.7-million. For 2024 financial reporting, as a result of exiting forbearance, the company will classify principal obligations on the secured debt which are beyond 12 months as long-term debt on its balance sheet.

Kontrol Technologies Corp.

Kontrol Technologies, a Canadian public company, is a leader in smart buildings and cities through IoT (Internet of things), cloud and SaaS (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.

We seek Safe Harbor.