Kontrol Energy

Delivering Energy Efficiency with Distributed Energy, IoT and Blockchain

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Overview

Kontrol Energy Corp (CSE:KNR) is a leader in the $2 Trillion global energy efficiency market which, according to the IEA, is the fastest growing energy market globally. Through distributed energy, the Internet of Things (IoT) and blockchain technology, Kontrol helps their customers reduce their overall cost of energy and Greenhouse Gas (GHG) emissions.  With a history of 10 years of operating success, Kontrol Energy is a fast-growing business —unlike most of its peers— with an anticipated revenue run rate for 2018 of $10 million across its four business streams: energy retrofits, distributed generation, energy analytics and GHG measurement and reduction. Kontrol Energy delivers these solutions and services to a variety of customers within the real estate, energy and municipal government sectors who seek to reduce their overall cost of energy and reduce their GHG emissions.

Targeting a run rate revenue of $100 million in five years, Kontrol Energy’s strategic plan includes implementing further growth through strong leadership, acquisitions and innovation.

“Our strategic plan is built on the foundation of our entrepreneurial spirit, our growing technology platform and the strength of our team,” said Kontrol Energy CEO Paul Ghezzi. “We are excited to deliver a future of robust energy and sustainability solutions for our customers, strong financial performance for our stakeholders and advancing our corporate social responsibility initiatives for the benefit of all.”

Kontrol Energy is led by a management team with extensive experience across a number of industries including energy, solar PB, IOT and data analytics. The team and the board of directors are supported by a blockchain-focused advisory board with members such as Manie Eagar, Chairman of the Blockchain Association of Canada. Significantly invested in the company, management and directors collectively hold approximately 49 percent of shares.

Company Highlights

  • Existing revenue platform dedicated to providing energy efficiency through distributed energy, IoT and blockchain technology
  • Extensive client base ranging across various industries
  • Strong revenue growth with an anticipated $10 million run rate for 2018
  • Strategic target to grow consolidated revenue run rate to $100 million within a 5 year period
  • Experienced management team and board of directors hold approximately 49 percent of shares

Multiple Revenue Streams/Offerings

Kontrol Energy’s business model focuses on the delivery of four primary offerings: energy retrofits, distributed generation, energy analytics and GHG measurement and reduction. Clients served by these offerings include recognized Canadian large cap companies like CapREIT and Suncor, as well as municipalities and other government bodies.

Energy retrofits

Energy retrofits are one-off deliveries where the company performs a non-invasive transformation of a building’s water, lighting or energy management systems. The goal of the retrofit is to make the systems more energy efficient, thus reducing costs and environmental impact for an organization. The energy retrofit line of business is reported to have a revenue run rate of $2 million.

Distributed generation

Distributed generation means moving away from traditional energy suppliers like power stations, grids, and large-scale centralized power plants that often require electricity to travel across vast distances. Instead, with distributed generation, energy is procured from modular, flexible technologies located near the buildings they serve. Kontrol Energy provides distributed energy solutions in the form of solar panels, combined heat and power and energy storage technologies, with a run rate revenue of $2 million.

Energy analytics

Implementing its capabilities in data analytics and the data procured from the systems linked to the IoT, Kontrol Energy is able to provide tools that show an overview of a building’s energy usage and help clients make informed decisions about their energy consumption. The current run rate revenue for this offering is $1 million.

GHG measurement and reduction

Looking to support its customers in achieving their sustainability objectives, Kontrol Energy delivers a solution for monitoring carbon emissions in real time. Providing solutions for how to reduce these emissions, Kontrol Energy also helps companies implement monetization initiatives tied to reduction such as carbon credits and certified emissions reduction allowances. Holding a significant market share in Ontario for this service, Kontrol Energy is looking to expand its run rate revenue of $5 million by entering the Alberta market in 2018.

Implementing decentralized ledger technology

By incorporating blockchain into its offerings, Kontrol Energy seeks to able to implement the features of a blockchain—such as its distributed validation possibilities, smart contract capabilities and enhanced security—into delivering energy efficiency solutions that are optimized and risk averse.

To implement this growth, Kontrol Energy will be taking on a variety of initiatives and is in review of multiple potential accretive acquisitions. Concurrently, Kontrol Energy will also continue implementing decentralized ledger technologies across its deliveries.

Growth Potential

To implement this growth, Kontrol Energy will seek to accelerate each revenue steam towards an integrated cloud-based service and application, while also creating a rich analytics capability across its portfolio of solutions. Concurrently, Kontrol Energy will also continue implementing decentralized ledger technologies across its solutions and services.

Management

Paul Ghezzi—CEO and Director

Mr. Ghezzi is a leader in clean tech, renewable energy development, solar project financing and distributed generation. He has global experience in power generation projects under Feed-in Tariff programs and Power Purchase Agreement programs for both commercial and utility-scale projects.

In 2008 Mr. Ghezzi created Canada’s first securitized solar energy fund. Since that time he has participated in the global development of both utility scale and commercial solar PV projects. In 2016 he launched a Canadian public company to acquire and consolidate energy efficiency companies and technologies under the Kontrol Energy brand. The Kontrol Energy group of companies has delivered more than 500 Million Kilowatt hours in energy savings over the past 20 years with a corresponding reduction in greenhouse gas emissions.

Mr. Ghezzi is passionate about building a sustainable future for all through renewable energy, energy efficiency, IOT and blockchain enabled technologies.

Kristian Lavereau—COO and Director

Kristian Lavereau is the former President of Kontrol Technologies. He has more than 25 years of experience in the IT solutions (analytics and mobile computing), energy optimization and efficiency (intelligent control systems, solar PV, lighting). He has built solutions for clients such as Greenwin, Minto, Oxford and the Toronto Catholic School Board. He has extensive experience with disruptive technology in the energy efficiency industry, especially when tenants and stakeholders are engaged in the process. He brings the vision and strategic direction to the company, with a direct focus on growth and operational profitability, building empowered teams to facilitate consistent growth.

His primary role is managing the day to day operations of the company and overseeing the operating subsidiaries as well as managing institutional client portfolios.

Claudio del Vasto—CFO and Director

Claudio Del Vasto is a senior finance executive with an extensive background in Corporate Finance, Strategy and Business Development.
During his career in Structured Finance at Bombardier, he provided customers around the globe with innovative financial solutions and arranged multibillion dollar complex deal closings that involved equity, debt and capital markets funding. Prior to his career in industry, he was a public accountant managing accounting, tax and assurance services.

He leads all of Kontrol Energy’s financial management, reporting, treasury and financing functions. He also provides expertise in acquisitions and is involved in the analysis and evaluation of all corporate investments.

Humberto Gutierrez—VP

Humberto Gutierrez is the former Vice President, Business Development of Canadian Solar Solutions, a wholly owned subsidiary of Canadian Solar (NASDAQ:CSIQ). He was an integral member of the team which developed and sold more than $1 billion of utility scale Solar PV projects from 2009 to 2013.
Following his career at Canadian Solar he has led the development of a commercial scale Combined Heat and Power (CHP) projects in Ontario, Canada. He has more than 25 years of experience in a variety of industries, including Renewable and Alternative Energy, Telecommunications, Information Technologies and Agriculture.
His primary role is the development and installation of CHP systems and the management and delivery of all Utility and Local Distribution Company programs and solutions.

Steve Smith—Director

Steve Smith’s principal occupation is to serve as President of Tangent Management Corp. He has served as a director of Taku Gold Corp. since 2005. He has over 23 years of experience in corporate management, corporate finance, public relations and administration. He is the former President and CEO of the Corporation, a position in which he served from 2007 to July 2016. Since March 2001, he has also served as a Partner of Tangent Management Corp, a consulting firm assisting public and private companies with corporate operations, capital development, corporate communications and regulatory compliance activities.

Andrew Bowerbank—Director

Andrew Bowerbank’s principal occupation is to serve as Director of Sustainable Building Services at EllisDon Corporation. He is the former Executive Director/CEO of the World Green Building Council (2007-10) representing over 60 member nations. During his tenure with the World Green Building Council, he acted as the member representative at the United Nations Environmental Programme. In addition to his current work as Director, Sustainable Building Services at EllisDon, he is a Council member at the Federation of Canadian Municipalities in Ottawa, a Board member at CDML, and a member of the BRE Global Standing Panel of Experts (UK).

Geoff LaFleur—Director

Geoff LaFleur is President of Highwood Capital.  Since 2012, he has developed and executed successful capital formation and marketing strategies that have to led to raising $200 Million across a number of different private equity investment offerings.  Among these, he had direct involvement in helping to capitalize two separate offerings that had gone on to each win the Private Capital Markets Association (PCMA) Deal of the Year in their respective categories.  In addition to the work he has done in Private Equity, he has held executive leadership and strategic positions across corporate and start-up environments (including Shaw Communications and TELUS Communications) in some of the fastest growing industry market segments including mobile application development, Cloud Computing, the Internet of Things (IoT), digital content delivery, renewable energy, E-commerce and wireless communications.


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