Kontrol Tech Looks To Raise $10.0 Million Via At The Market Financing

Kontrol Technologies (NEO: KNR) is looking to add additional funds to company coffers. The firm last night revealed that it would be conducting an at-the-market financing.

The financing will look to raise gross proceeds of up to $10.0 million over the next several months. Shares are to be sold directly to the market via the Neo Exchange in Canada, through an equity distribution agreement entered into with Echelon Wealth Partners.

Within the associated news release, the company indicated it intends to use the net proceeds from the financing for capital expenditures, working capital, and general corporate purposes, include research and development. Kontrol went into greater detail in the prospectus filed for the financing, indicating that it has no probably acquisition targets, although it intends to search for accretive opportunities.

In terms of research and development meanwhile, the company has stated that it is looking to expand its current operations into smart buildings and facilities, real time air quality monitoring industries, and emission verification and compliance. The company intends to step into these spaces via internal R&D, personnel acquisitions, and strategic acquisitions if such opportunities present themselves.

The company last reported a cash position of $3.3 million as of December 31.

The financing follows the news that the company intends to delay its plan to list on a major US stock exchange.

Kontrol Technologies last traded at $1.31 on the Neo.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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