Kontrol Technologies Corp. (Cboe CA:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol” or the “Company”) provides a corporate update for February 2024.

New Ethylene Oxide (EtO) Analyzer Orders

The Company has received multiple new EtO analyzer orders for USA customers as it continues to expand its solutions for the Ethylene Oxide market. Beginning in 2023 and year to date the Company has received 14 EtO analyzer orders. This was a new market for the Company in 2023 and is an example of organic growth through innovation. Each analyzer includes hardware, software, and real-time monitoring.

Following the press release dated March 23, 2023, the Company is pleased to announce that it has finalized its Government funding report with positive results for its Dry Kilne probe (“Kilne probe”) technology. The Company has received a total of $130,000 in funding to support the development of its new technology.

Over a 5-month period of continuous operation the Company’s Kilne probe was able to operate with 70 percent less power consumption, 90 percent less facility footprint and 90 percent improvement in unscheduled downtime as compared to traditional technology in the market.

"We are extremely pleased with the results of the Kilne probe technology and will be sharing those with our addressable market as our technology can deliver lower operating costs and improved facility performance. We will now focus on scaling with our customers,” says Paul Ghezzi, CEO of Kontrol.

The environmental and process monitoring of emissions is critical in industries, both for production (quality of finished products), reducing green house gases (GHG) and harmful emissions, but also fuel savings which reduces consumption of natural gas, coal, and alternative fuels. Cement plants are one of the major contributors to GHG emissions globally. Enhanced monitoring and management may improve operating efficiency and lead to GHG emission reductions.

Forbearance Agreement

The Company is in compliance with its Forbearance Agreement and is working closely with its secured lender. The Company is in discussions with multiple Schedule A Banks as it continues to deleverage and reduce its secured debt obligations.

“In 2023 and into 2024 we had a primary focus on deleveraging and right sizing the balance sheet. As we look at our growth plans for 2024, we believe we are in a good position to negotiate long-term lending terms which will support future growth including potential tuck-in acquisitions. We will take the appropriate time in Q1, 2024 to evaluate the best debt solution for the Company,” continues Ghezzi.

The Company anticipates a transition to a traditional lending agreement in Q1 2024.

Kontrol Technologies Corp.

Kontrol Technologies Corp., a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.

Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and by reviewing its profile on SEDAR at www.sedarplus.ca

Neither IIROC nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking information contained in this press releases includes, but is not limited to, the following: the potential benefits of winding up Global; the future operations of the Company; and the Company’s ability to meet its contractual obligations to make payments under the FBA.

Where Kontrol expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that the Company will have sufficient financial and other resources to fulfil expectations with respect to future operations and meet contractual payment obligations, deliver future emission monitoring solutions and products to be offered by Kontrol for its potential customers; that the future success of any of Kontrol’s products; and that demand will continue for continuous emission monitoring technology and the success of the High-Temperature Dry Kiln technology and for the Company’s products in particular.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. Kontrol does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.