Kontrol Technologies Corp (OTCQB:KNRLF, NEO:KNR) said it has struck a credit agreement worth up to C$50 million, which will streamline its balance sheet and add capacity for future acquisitions.
The lender is a Schedule 1 bank, the company said, and the credit facilities consist of a loan of up to C$20 million, a revolving credit facility of up to C$10 million, and a so-called accordion feature of up to C$20 million.
"These facilities will streamline the balance sheet by consolidating debt and lowering the company's cost of capital," said Paul Ghezzi, the CEO of Kontrol, in a statement. "It will also add capacity for M&A that provides financial flexibility to allow capital deployment in a timely manner as we execute on potential acquisitions."
READ: Kontrol Technologies announces record 2Q revenue of $29.1M driven by its Kontrol platform
The facilities bear interest on a monthly basis at bank prime rate plus a margin of between 1.25% and 2.0% with principal repayments under the term loan equal to 1.25% of the drawn amount, payable in quarterly installments.
Echelon Capital Markets acted as exclusive financial advisor to arrange the facilities and Kontrol expects, that once closed, it will have drawn around C$6 million on the term loan.
Kontrol Technologies is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. The company provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.
Earlier this month, Kontrol released its results for the second quarter to June 30, 2022, which showed record revenues of C$29.1 million, up 599% year-over-year.
Revenues for the six months to end-June were C$55.8 million and reported adjusted earnings before interest, tax depreciation and amortization (EBITDA) of C$2 million and C$4.5 million for the second quarter and first half respectively.
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