Kontrol receives $750,000 continuous emissions order
KONTROL ENERGY Corp. has received a $750,000 order for its continuous emissions business, which includes BioCloud units, and a separate initial order from one of Ontario’s largest electricity generators. The continuous emissions and BioCloud revenues are anticipated to be recorded in Q1 2021.
“We are very pleased to receive a significant order in our core business with a U.S. manufacturing customer, which also i ncludes two BioCloud units as part of a package sale,” said Paul Ghezzi, chief executive officer of Kontrol. “Our corporate strategy is to quote BioCloud units as part of all new sales opportunities from our core business. In addition, we are pleased that one of Ontario’s largest electricity generators has ordered an initial two units of BioCloud. Both customers have additional scale potential with numerous facilities. Our recent product launch and technology walkthrough in December was a success and has initiated accelerating interest in how BioCloud can help create safer spaces.”
To date, the company has received 40 initial distribution orders for delivery in January from its existing distribution network. The company has entered into six distribution agreements (one exclusive and five non-exclusive) and is in negotiations for various potential additional non-exclusive distributions agreements. Distribution is a key part of the company’s go-to-market strategy that can allow the company to scale quickly.
“In a short period of time since the official launch of BioCloud in December, we have received strong interest and numerous distribution requests,” said Gary Saunders, vice-president, Kontrol. “We envision many more agreements across the globe as we focus on growing the BioCloud business.”
As the company continues to build its distribution business, the company anticipates that distributors will be required to maintain a minimum of 250-unit sales per annum to retain non-exclusivity and distributor pricing. The company’s internal goal is to have 30 regional distributors established by the end of Q1 2021.
The company plans to begin numerous pilots with both existing customers of Kontrol and new potential customers.
The purpose of the pilots is to provide potential customers with various specific application use cases across their facilities. The types of pilot customers will include the sectors of commercial real estate, grocery stores, franchised restaurants, educational facilities and other. Subject to pilot customer approval Kontrol may announce customer pilots or may operate them under non-disclosure agreement.
The BioCloud unit operates with a proprietary detection chamber. The retail price for the detection chamber consumable will range from $400 to $500 and the recommended replacement is three times per year or whenever the detection chamber comes into contact with SARS-CoV-2. Customers that purchase multiple units will receive volume discounts for the detection chamber.
Reagent supply chain
The detection chamber includes a specific reagent system. To date, the company has been sourcing its reagents from the United States. The company has initiated discussions and testing to source its reagents from Canadian-based sources. By doing so, it is seeking to add more of its supply chain in Canada but also reduce the costs of the detection chamber. Further updates will be provided following additional testing.
Kontrol and its manufacturing supply chain operate as an essential service provider and do not anticipate being impacted by applicable COVID-19 shutdowns.
We seek Safe Harbor.
Ernest Belyea, Andrew Bowerbank, Claudio Del Vasto, Paul Ghezzi, Joanna Osawe, Stephen Smith
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