- Kontrol Technologies announced it has signed an amended credit agreement with its secured lender and exited forbearance
- Forbearance is a temporary reduction or postponement of payments and in leaving this, the company returns to regular commercial borrowing
- The company started 2023 with around C$15 million of secured debt and by the end of Q1 2024 it anticipates a secured debt balance of roughly C$3.7 million
- Kontrol Technologies Corp. last traded at $0.22 per share
Kontrol Technologies (NEO:KNR) announced it has signed an amended credit agreement with its secured lender and exited forbearance.
Forbearance is a temporary reduction or postponement of payments and in leaving this, the company returns to regular commercial borrowing. Under the terms of the credit agreement, interest is payable at bank prime rate plus a margin (between 1.25 per cent and 2.0 per cent based on the its ratio of secured debt to earnings before interest taxes and depreciation) with principal repayments amortized over five years.
The company started 2023 with around C$15 million of secured debt and by the end of Q1 2024 it anticipates a secured debt balance of roughly C$3.7 million.
For 2024 financial reporting, because of its exiting forbearance, Kontrol’s leadership intends to classify principal obligations on the secured debt that are beyond 12 months as long-term debt on its balance sheet.
“A key objective for the company in 2023 was to strengthen the balance sheet and we have accomplished that by focusing efforts to reduce debt and corresponding interest expense,” Paul Ghezzi, Kontrol’s CEO, said in a news release. “Our successful de-leveraging has well positioned the company to execute on strategic initiatives to continue to grow the business.”
Kontrol contributes to smart buildings and cities through the internet of things (IoT), cloud and software-as-a-service (SaaS) technology. Its solutions and services improve energy management, monitor continuous emissions and accelerate sustainability.
Kontrol Technologies Corp. (NEO:KNR) last traded at $0.22 per share.
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