Quality Industrial Corp (OTCMKTS:QIND) on September 30, 2022, confirmed that the independent external evaluation of Quality International Co Ltd has finished and a report has been given to its management of QIND.
On Friday, QIND stock slumped 12.82% to $0.3400 with 183.13K shares, compared to its average volume 239.82K shares. The stock moved within a range of $0.3150 – 0.4350 after opening trade at $0.4350.
Quality Industrial Corp. Confirms Completion of External Evaluation and Consolidation of Financials for First Acquisition
The conditions of the legally binding Letter of Intent had been signed by both parties on June 30, 2022. This included the first tranche payment of $1,000,000, paid in line with the completion of the acquisition.
The acquisition’s financial results will be consolidated into the company’s second and third quarter of 2022 P&L and Balance sheet. This will be done when the company reports its financial performance for nine months ending September 30. The financial projects confirmed by external evaluation include projected revenue of $105-125 million, projected EBITDA of $11-13 million, and total assets of $450-500M.
QIND Director, John-Paul Backwell said that the firm is pleased with the thorough evaluation of the large acquisition. Backwell added that it gives clarity on the higher revenues forecasted for the current year and beyond. The Director also stated that though it has been a long process, the company is always thorough in its diligence.
QIND Chairman, Nick Link said that it is vital that a legally binding agreement for the acquisition has been done and the first payment has been made. Link added that the firm is working to ensure a change doesn’t impact the award of large tender contracts with global multinational companies.
“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.
QIND stock is trading above the 20-Day and 50-Day Moving averages of $0.32 and $0.17 respectively. However, the stock is trading below the 200-Day moving average of $0.35.