Earlier this month, we reported that WikiSoft Corp (OTCQB: WSFT) had exploded following the announcement of a merger deal. The OTCQB member has surged by about 500% since the beginning of the month, demonstrating once again that the OTC market can offer great investment opportunities even amid the massive bearish pressure that we experience today. The last time we discussed WSFT, it was trading at $0.32. At the time of writing, the stock has consolidated above $0.40. Trading volumes surged to record figures at the beginning of the month, with more than 4 million shares changing hands in a single day.
Investors started to pay attention to WSFT after reports that Emergency Response Technologies, Inc (OTCPK: ERT), a subsidiary of ILUS International (OTCPK: ILUS), had acquired controlling shares in WSFT.
Speaking about ILUS, we have discussed it on several occasions, initially sharing our bullish stance in May 2021 when the share price was hovering near the $0.1 mark. Eventually, the OTC stock broke above $0.5 before correcting to the current level near $0.1.
ILUS has been very active when it comes to acquiring shells as well as businesses with revenue, and the latest deal with WSFT demonstrates that it hasn’t slowed the pace. WSFT has updated its Board of Directors and named new executive officers. ILUS CEO Nick Link has taken over as Chairman of WSFT, while ILUS Managing Director, John-Paul Backwell, COO, Louise Bennett, and CFO, Krishna Moorthy, took seats on the Board of Directors for the newly acquired company.
On June 24, the new board green-lighted a change in the name and ticker of the company to Quality Industrial Group to reflect its new business direction. Thus, WSFT is ready for a second reverse merger, at this time under the ILUS umbrella. The company is now preparing for a major reverse merger deal with Quality International – a UAE-based company that has generated revenue of $100+ million in 2021 and is expected to double the figure in 2022. After the deal is completed, Quality International will become Quality Industrial and will trade on OTCQB.
We expect the stock to continue rallying when the announcement of the reverse merger deal with Quality International is released.
— Yenom (@Yenom99) June 27, 2022
How Big Is Quality International?
Quality International is a leading Process Equipment Manufacturer and Project Management Company in the UAE, having manufacturing facilities in Sharjah, Fujairah, and Abu Dhabi. We think this is a huge deal for both WSFT and ILUS.
The company manufactures and sells a wide range of products for the oil and gas, chemical and fertilizer, water and wastewater, offshore, and petrochemical industries. The list of products includes:
- Pressure vessels;
- Columns and towers;
- Shell and tube heat exchangers;
- Shop fabricated tanks;
- Piping spool fabrication;
- Skid mounted packages and modular assemblies;
- Site erected tanks;
- Offshore structures.
Previously, WSFT used to operate as a big data provider of information for businesses. It has operated Wikiprofile.com and Wikifunding. The former is an online platform that offers information on companies, business people, and investors, while the later is a website to accelerate matching startups with investors.
How Does ILUS Benefit from the Merger Deal?
Given the size and potential of Quality International, this single deal can propel ILUS to NASDAQ someday. Unlike WSFT, which is an OTCQB member, ILUS has the Pink Current designation only. While this won’t happen tomorrow, WSFT’s acquisition of Quality International can jump-start ILUS’ ambitions for uplisting.
Not at all! It’s summarized in the graphic but $WSFT, majority owned by $ERT (which is wholly owned by $ILUS) is the acquisition vehicle for Quality Int’l ($100M+ rev). It will allow $ERT to achieve a valuation (together with other assets from $ILUS) sufficient for IPO on NASDAQ. pic.twitter.com/kGJaSFj62G
— Igal (@igal_n) June 28, 2022
ILUS continues to expand its ecosystem and has other merger and acquisition (M&A) deals in the plan. Last year, ILUS focused on the industrial sector, developing Emergency Services products, Emergency Response vehicles, Vehicle conversions, EVs, Wearable tech & Smart Tech. Today, it is an M&A investment company and benefits from its subsidiaries like ERT/WSFT. ILUS is operating out of New York, London, and Dubai, and is focused on adding shareholder value through innovation and growth.
The company is primarily focused on but not limited to acquiring businesses in the Technology, Engineering & Manufacturing sectors globally. It looks to acquire companies that have strong management and potential to grow rapidly and can benefit from cross-pollination of territories, products, and skills from other group companies. Considering that ILUS is usually acquiring businesses with revenue in the $1 million to $5 million range, Quality International is surely the jackpot.
On top of that, ILUS is negotiating another deal as well, which is another step closer to uplisting. Earlier in June, the company announced that its subsidiary, ERT, had taken significant steps towards achieving its short-term milestones and therefore appointed Dan Peters as its CEO to assist with the implementation of its growth plans.
ILUS has simultaneously made significant progress with its Renewables subsidiary, which is already home to two businesses, including:
- Replay Solutions – an urban mining company working on the recovery of rare metals from discarded electronic equipment and electrical waste using innovative mechanical and chemical treatments.
- E-Raptor – a range of commercial electric utility vehicles (EVs) which are used by the industrial, hospitality, agricultural and public safety sectors.
Replay Solutions and E-Raptor are now setting up their new operations in Serbia. ILUS is currently negotiating a third addition to its Renewables subsidiary. Specifically, it is in the final stages of agreeing on the acquisition of a battery manufacturing company that is currently generating $20 million in annual revenue. The company primarily designs and manufactures several battery types and is rolling out its own lithium battery product. Several byproducts of Replay Solution’s mining process such as plastics, lithium, and various minerals can be used in the potential acquisition’s manufacturing plant. The availability of required raw materials and minerals from Replay Solutions will substantially reduce manufacturing costs for the company. The battery manufacturer will also develop and manufacture batteries for the E-Raptor range of EVs and work on the development of specialized batteries for Unmanned Aerial Vehicles (Drones).
The announcement about the new acquisition is expected to be released within weeks. The company stated:
“We continue to add building blocks to the ILUS conglomerate. The newly appointed CEO of ERT will play a vital role in the growth of our existing Emergency Response acquisitions as well as consolidating the new ones into the group when they close. This gives extra room for the ILUS management team to focus on bringing further strategically aligned and valuable assets into our stable. Nick and I will remain intricately involved in the progress of ERT which represents the culmination of a vision we have worked towards for over 10 years. We are very clear in our intention to continually add assets to ILUS which have a direct impact on the increased safety and well-being of our communities.”
The Final Note
While WSFT is the main beneficiary of the acquisition of Quality International, ILUS will be supported as well. With a float of fewer than 18 million shares, WSFT is ready to extend its aggressive rally once the official news is released. With more than $200 million in revenue expected in 2022, WSFT will become a valuable stock to hold in the long term.
Elsewhere, ILUS will definitely accelerate its uplisting ambition. The Pink Current stock has been consistently declining since November last year, but now it’s time to break above the record peak at $0.5+ and aim for the $1 mark.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment