TORONTO--(BUSINESS WIRE)--May 20, 2026-- Kontrol Technologies Corp. (CBOE.CA:KNR) (OTCQB:KNRLF) (FSE:1K8) (“Kontrol Technologies” or “Kontrol” or “Company”) is pleased to announce the formation of a new operating subsidiary and to provide a corporate update.

Formation of Kontrol Applied Sciences

The Company announces the formation of Kontrol Applied Sciences Corp. (“Kontrol Applied Sciences”), an operating subsidiary of Kontrol Technologies Corp. Kontrol Applied Sciences has been created to sit at the intersection of safer spaces, microbiology, and artificial intelligence. Building on Kontrol’s prior experience in developing technology solutions designed to improve the safety and quality of indoor environments, Kontrol Applied Sciences will seek to further explore and apply emerging science as it relates to study of microorganisms and their interaction with various built environments.

Kontrol Applied Sciences is currently in the early-stage evaluation and research phase of development. The Company’s current plans include identifying potential research and commercialization opportunities, evaluating applicable technologies and applications The Company also intends to identify opportunities where government funding programs may be available to support early-stage initiatives, consistent with its prior experience in accessing such programs.

During this initial phase, anticipated expenditures are expected to primarily consist of research and development activities, exploratory scientific analysis, business development initiatives, and costs associated with evaluating potential funding opportunities and strategic partnerships. The Company currently anticipates that expenditures associated with Kontrol Applied Sciences will remain limited in the near term while the Company assesses the viability and scope of potential projects and determines appropriate next-stage development plans.

The next stage of development is expected to involve the identification and selection of specific research initiatives or technology applications for further development, including the potential pursuit of research collaborations. The timing and costs associated with any such initiatives will depend on the outcome of the Company’s ongoing evaluations.

In its initial stages, the Company does not anticipate that any investments or activities undertaken through Kontrol Applied Sciences will be material to its overall business or financial results. The Company will provide further updates as developments warrant.

Kontrol BuildX AI – Update

Following the previously announced launch of the Kontrol BuildX AI platform on May 8, 2025, the Company is providing an update on the strategic direction of this initiative. With its service platform currently active across more than 400 buildings, the Company intends to continue developing Kontrol BuildX AI as an internally focused Autonomous Agent to support internal business functions including Requests for Proposals (RFPs), technical knowledge retrieval, document analysis, workflow coordination, and operational reporting. The platform has already contributed to the Company’s ability to participate in larger RFP opportunities and increased proposal response capacity without corresponding increases in labour or overhead.

An Autonomous Agent is an AI-powered system capable of independently performing complex tasks, making data-driven decisions, and executing multi-step workflows with minimal human intervention. Unlike traditional software tools, autonomous agents may perceive their environment, process large volumes of structured and unstructured data, and continuously improve performance through iterative learning and interaction with operational datasets.

The Company will fund all development internally and the software investment which is not anticipated to be material to the overall expenses of the Company.

Extension of Director Loan

The Company announces that the director loan provided by Paul Ghezzi, Chief Executive Officer, previously announced on May 8, 2025, has been extended to December 30, 2026, on the same terms and conditions as previously disclosed.

Potential HVAC Services Acquisition Update

The Company continues to make progress on the potential acquisition of an HVAC services business, as previously disclosed by way of a non-binding letter of intent announced on March 27, 2026. There can be no assurance that a definitive agreement will be entered into or that the transaction will be completed on the terms currently contemplated, or at all. Further updates will be provided if and when a definitive agreement is executed. The Company confirms that it has sufficient cash on hand to fund the potential acquisition.

Kontrol Technologies Corp.

Kontrol Technologies Corp. is a leader in smart buildings and energy efficiency solutions. Through a combination of technology-driven services and strategic acquisitions, Kontrol delivers integrated solutions that reduce energy consumption, lower carbon emissions, and enhance building performance for commercial and residential properties across Canada. Additional information about Kontrol Technologies Corp. can be found on its website at www.kontrolcorp.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.

Neither CIRO nor any stock exchange or other securities regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy.

Where Kontrol expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that sufficient capital will be available to the Company and that technology will be as effective as anticipated.

However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Such risks include, but are not limited to, that sufficient capital and financing cannot be obtained on reasonable terms, or at all; that those technologies will not prove as effective as expected; those customers and potential customers will not be as accepting of the Company’s product and service offering as expected; that definitive agreements are closed on pending acquisitions and government and regulatory factors impacting the commercial HVAC, energy conservation and technology industries.

Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. Kontrol does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260520241763/en/

Paul Ghezzi, Chief Executive Officer
Kontrol Technologies Corp.
www.kontrolcorp.com
(905) 766.0400

Source: Kontrol Technologies Corp.