Kontrol Technologies Completes Sale Of Operating Subsidiary
After concluding the sale of its subsidiary ORTECH Consulting, Kontrol Technologies Corp. received a cash infusion of $6.1 million and working capital of about $600,000, net of closing costs. This calculated action fits with their 2024 plan, which focuses on particular business verticals in the field of industrial and commercial construction. Paul Ghezzi, CEO of Kontrol Technologies, emphasized that this action provides flexibility to reduce debt levels while being in line with their strategic ambitions.
The company now has significant cash reserves when the sale is complete, which are bolstered by the $3.2 million it had on hand before to the deal. The remaining working capital is expected to be recovered over the course of the following three months, and the transaction structure includes a $300,000 indemnity holdback placed in escrow.
Ghezzi went on to highlight the importance of a stronger financial position at the beginning of 2024 in their strategic plan for the year. IoT, Cloud, and SaaS solutions are used by Canadian public company Kontrol technology Corp., which specializes in smart building and city technology. Their goal is still to empower clients through improved energy efficiency, ongoing emissions tracking, and general building sustainability. With recurring revenue models as their new focus, they can now aim for higher margins and long-term growth.
This transaction is essentially a strategic move that Kontrol made to strengthen its financial stability, simplify operations, and refocus on core areas that offer long-term development and innovation in the smart building and Internet of Things space.
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