Kontrol Technologies Increases Its Solutions for the Multi-Residential Building Sector and Enters into Non-Binding Letter of Intent to Acquire HVAC Service Business

About this update from Kontrol Technologies Corp.

[{"type":"text","content":"Kontrol Technologies Increases Its Solutions for the Multi-Residential Building Sector and Enters into Non-Binding Letter of Intent to Acquire HVAC Service Business\n\n\n\n\n\n\n\n Kontrol Technologies Corp.\n \n (CBOE.CA: KNR) (OTCQB: KNRLF) (FSE: 1K8)\n \n (\"Kontrol Technologies\"\n \n or\n \n \"Kontrol\"\n \n or the\n \n \"\n \n\n Company\n \n\n \")\n \n is expanding its solutions in the Multi-Residential Building sector and as part of its ongoing mergers and acquisition strategy has entered into a non-binding Letter of Intent (the \"LOI\") to acquire an Ontario-based HVAC service business (the “Target”).\n \n\n\n Multi-Residential Market\n \n\n\n Over the past twelve months, the Company has been focused on expanding its building footprint in the multi-residential market, with a particular emphasis on complex heating and cooling retrofits in aging buildings. This strategy combines a transition to energy-efficient solutions, the leveraging of applicable rebates for energy efficiency upgrades, and the establishment of long-term preventative maintenance agreements. The Company is now quoting larger-scale opportunities as part of its organic growth plans. Ontario's multi-residential sector represents a significant addressable market. According to the Urbanation-FRPO Ontario Rental Market Study Update (March 2025), the province's purpose-built rental apartment universe reached 707,853 units in 2024, with approximately 87% of Greater Toronto Area rental stock constructed prior to 1980.\n \n ¹\n \n This aging building inventory creates substantial demand for heating and cooling system modernization — a market the Company is well positioned to serve.\n \n\n\n Strategic Acquisition — Non-Binding Letter of Intent\n \n\n\n Kontrol continues to be focused on growing both organically and through acquisition. The Company has entered into a non-binding LOI with a potential acquisition of an Ontario-based HVAC service company. The LOI is expressly non-binding and does not obligate either party to complete a transaction. There can be no assurance that the potential acquisition will be completed on the terms described herein, or at all.\n \n\n The target company generates approximately $3 million in annual revenue with normalized EBITDA margin of approximately 12%. The acquisition price is $1.2 Million which i...

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