Kontrol Energy

Delivering Energy Efficiency with Distributed Energy, IoT and Blockchain

This profile is part of a paid investor education campaign.*

Overview

Kontrol Energy Corp (CSE:KNR, OTC:KNRLF, FSE:1K8) 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), Cloud and SaaS 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 with an anticipated revenue of $16 million in 2019 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, cannabis 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. As per their mandate, Kontrol Energy has completed 6 acquisitions with a number of new accretive acquisitions in the pipeline for 2019.

“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 several industries including energy, IoT and data analytics. Significantly invested in the company, management and directors collectively hold approximately 49 percent of shares.

Investment Highlights

  • Existing revenue platform dedicated to providing energy efficiency through distributed energy, IoT, Cloud and SaaS technology
  • Extensive client base ranging across various industries
  • Strong revenue growth with an anticipated $16 million run rate for 2019
  • 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 (TSX:CAR.UN) and Suncor (TSX:SU), 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 $2 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 $10 million by entering the Alberta market in 2018.

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, Cloud and SaaS 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

Mr. Del Vasto is a senior finance executive with an extensive background in Corporate Finance, Strategy and Business Development.

He served in various Corporate Finance roles with a large industrial public company that included global experience in arranging innovative multi billion-dollar capital markets deal closings in Structured Finance.  Prior to his career in industry, he was a public accountant managing accounting, tax and assurance services.

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

Forbes Silverthorne VP, Building Performance

In a career spanning more than 2 decades, Forbes has acquired a high level of expert knowledge in the optimization of HVAC equipment and Building Automation & Control Systems operation in buildings.  In his early career working with BACS companies such as Dimax Controls and Landis & Gyr (Siemens), he developed a strong foundation in electronic and pneumatic control systems as well as mechanical and HVAC engineering principals in commercial and institutional buildings.  In 1998 he relocated to United States to focus on the application of BACS in large datacentres throughout the country that were owned and operated by such companies as Visa International, Exodus Communications, Cable & Wireless, and Google. His vast HVAC equipment and BACS experience in commercial, institutional, and mission critical buildings has led to the evolution of the tools that Kontrol Energy uses to provide effective building performance solutions for wide variety of building types.

In his present role, Forbes is the Vice President of Building Energy Analytics Performance, Division of Kontrol Energy and oversees the operation of the business.

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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