Kontrol Technologies (NEO: KNR) is set to resume trading this morning following a halt on Wednesday. The halt was a result of the news that the company is acquiring a “leading” building solutions company, whom focuses on the integrated installation of building automation systems, for a purchase price of $6.75 million.
The company did not provide a name for the operator being acquired, however did provide some basic financial details of the firm. The target reportedly had audited revenues of $43.0 million for fiscal 2020, while posting net income before tax of $128,000. The company reportedly has $120 million in oncoming work over the next three years, with the firm focusing on large projects traditionally that result in one-time revenues, as opposed to recurring revenues.
Under the terms of the arrangement, Kontrol is to pay an upfront $6.75 million. Consideration is to consists of $3.25 million in the form of cash, while $3.5 million is to be funded via a vendor take-back transaction. A performance payment is also to be made in connection with the financing, equal to 45% of adjusted cumulative earnings after tax in excess of $4.5 million.
The transaction is currently slated to close in August 2021.
Kontrol Technologies last traded at $0.88 on the Neo.
Information for this briefing was found via Sedar and Kontrol Energy Systems. 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.
