SAN FRANCISCO, CA / ACCESSWIRE / September 30, 2022 / Quality Industrial Corp. (OTC:QIND), confirms that the independent external evaluation of Quality International Co Ltd has been completed and the report provided to the management of QIND. The conditions of the legally binding Letter of Intent which both parties signed on the 30th of June 2022 included a first tranche payment of $1,000,000 which has already been paid in line with the acquisition completion. Therefore, the acquisition's applicable financial results will be consolidated into QIND's Q2 and Q3 2022 P&L and Balance sheet when the company's Form 10-Q, which will report the financial performance of the nine months ended September 30th, is filed by the 14th of November 2022.
Below are some of the financial projections for the acquisition as confirmed by the external evaluation:
- 2022 Projected Revenue: $105-125M
- 2022 Projected EBITDA 2022: $11-13M
- 2022 Projected Total Assets: $450-500M
'We are pleased that this thorough evaluation for such a large acquisitionhas been completed. It gives us the clarity we need and confirms higher revenue than originally forecasted for 2022 and beyond. Although this has been a lengthy process, we will always be extremely thorough in our diligence and an acquisition of this magnitude deserves every detail to be evaluated. It's an exciting growth period for the company with this first acquisition and further progress made behind the scenes on additional manufacturing acquisitions which have reached their final stages.' said QIND Director, John-Paul Backwell.
To obtain a neutral assessment of the acquisition in line with specific criteria, QIND's management ordered the independent external evaluation. The final Share Purchase Agreement has already been in the hands of the legal counsel for both parties awaiting the external evaluation report which arrived yesterday. Following receipt of the report, fine tuning of the agreement is taking place alongside a discussion between the management teams of both companies on a suitable process which will ensure that current bids by the acquisition for large contracts to the value of over $400 million are not negatively affected by a change in control.
QIND Chairman, Nick Link, commented: 'It is important to note that a legally binding agreement for this acquisition has already been signed and the first payment in line with the acquisition has already been made. We are now working with the company to ensure that a change of control does not impact on the award of large tender contracts with global multinational companies. These are significant contracts with global companies where the contract process has included the likes of parent company guarantees, financial backing and submission of parent company financials. We are navigating our way through the necessary steps to ensure the smoothest path forward for the acquisition to achieve its agreed growth forecasts. Once confirmed, the final Share Purchase Agreement, which is already in the attorney's hands will be signed by both parties.'
This Press Release does not constitute an offer of any securities for sale.
This press release contains statements of a forward-looking nature about the Company. You can identify these forward-looking statements by words or phrases such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'is/are likely to,' 'future' or other similar expressions. The Company has based these forward-looking statements primarily on the Company's current expectations and projections about future events and financial trends that the Company believes may affect Company's financial condition, results of operations, business strategy, and financial needs. There is no assurance that the Company's current expectations and projections are accurate. All forward-looking statements in this press release are based on the Company's information on the date hereof. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company's actual results to differ materially from those implied by the forward-looking statements. The Company operates in a rapidly evolving environment. New risk factors emerge from time to time. The Company does not undertake any obligation to update or revise the forward-looking statements except as required under applicable law. This press release does not constitute or form part of any offer or invitation to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities, nor any solicitation of any offer to purchase, otherwise acquire, issue, subscribe for, sell, or otherwise dispose of any securities of the Company. The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, or distributed should inform themselves about and observe such restrictions.
Quality Industrial Corp.
315 Montgomery Street, San Francisco
CA 94104, USA
Investor site: https://qualityindustrialcorp.com
Twitter: @ QualityIndCorp @ILUS_INTL
SOURCE: Quality Industrial Corp.
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