NEW YORK, NY - (NewMediaWire) - May 2, 2024 - ILUS International Inc. (OTC: ILUS) is a mergers and acquisitions company that is committed to acquiring and growing businesses in the public safety and industrial sectors.
ILUS was delayed in the filing of its Form 10-K following the decision by its Industrial subsidiary, QIND, to agree to the cancellation of an acquisition, with the decision being made on 1 April 2024. The company has now filed its annual report, which includes a restatement of its financials for the years 2022 and 2023 due to the cancelled transaction.
Following the restatement of its financial statements, ILUS has experienced a significant impact on its balance sheet, resulting in a net loss recorded on its income statement. Despite this setback, ILUS is now on a positive footing following QIND's recent acquisition of Al Shola Gas and the more recent expansion of its Emergency Response subsidiary within its own publicly listed special purpose vehicle (OTC: SAML).
It is noteworthy for an OTC Markets listed company that ILUS has been able to accumulate over $62 million in total assets with net assets of over $32 million in the face of exceptionally challenging market conditions. Notably, the company remains securely on track to uplist both its Industrial and Emergency Response subsidiaries to a Senior Stock Exchange in the short to medium term. In this regard, senior publicly traded companies are visiting Dubai next week to tour facilities as part of their final due diligence stage.
Over three years, ILUS has acquired seven operating businesses, incorporated two entities, and attained control over two OTC-listed public entities which now operate as its subsidiaries. ILUS has incurred significant write-downs and losses during the process of consolidating its subsidiaries and operating businesses. These losses are a direct result of the integration and restructuring of the acquired businesses. Consequently, the net operational costs have increased as ILUS strives to drive the growth of its operating businesses and complete planned uplistings. To facilitate this, ILUS has augmented senior-level management and advisory resources.
ILUS' restructuring efforts are a part of its strategy to streamline operations and optimize efficiency. However, such efforts typically involve upfront costs, which are reflected in the current financial statements. Nonetheless, ILUS remains committed to its long-term growth objectives and is working diligently to mitigate the associated costs while maximizing value for its stakeholders.
In January 2024, ILUS acquired a controlling interest in Samsara Luggage Inc. (OTC: SAML) to function as the company's special-purpose vehicle for the expansion of its Emergency Response subsidiary. After the acquisition, SAML filed for approval of its name and trading symbol change. In February 2024, SAML acquired seven Emergency Response operating businesses from ILUS. This strategic acquisition was executed to facilitate a more efficient expansion of the emergency response businesses. The outcome of this transaction is beginning to yield positive results.
In March 2024, ILUS' Industrial subsidiary, QIND, acquired the controlling interest in Al Shola Gas, a fast-growing company operating out of the United Arab Emirates. Al Shola Gas possesses a strong balance sheet and delivered approximately $11 million and 1.8 million in 2023 revenue and net income, respectively. This acquisition is expected to significantly enhance ILUS' position in the energy sector and play a crucial role in ILUS' long-term growth strategy.
The strides ILUS took during the first quarter of 2024, as indicated above, were not consolidated and reflected in the company's 2023 annual report. The company is keenly anticipating the submission of its forthcoming quarterly report, which will be accompanied by those of its subsidiaries, to depict the positive outcomes.
After having filed its Form 10-K, among several priorities, the company is also now concentrating on issuing a SAML equity dividend to ILUS Shareholders of record. It is expected that an announcement will be made shortly regarding this matter.
ILUS believes that its Industrial and Emergency Response subsidiaries are trading at a significant undervaluation on the OTC Markets. The company anticipates that by listing its subsidiaries on senior stock exchanges, through agreements based on the equity valuation of the operating businesses within each subsidiary, there will be a considerable increase in the value of its majority holdings in each subsidiary. This increased value is expected to provide additional liquidity to the company, which it plans to use for further expansion. The company has been unable to complete several planned acquisitions due to capital-raising challenges faced in the OTC Markets. Furthermore, both ILUS subsidiaries are expecting to close significant additional acquisitions following their respective uplists. These are larger deals where extensive negotiations have taken place and are lined up for completion.
The ILUS team remains unwaveringly committed to achieving its goals, accelerating growth and achieving stronger financial performance in the coming quarters.
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Certain information set forth in this press release contains "forward-looking information", including "future-oriented financial information" and "financial outlook", under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, the information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company's business, projects, and joint ventures; (iv) execution of the Company's vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company's projects; (vi) completion of the Company's projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company's current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management's beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. The Securities and Exchange Commission ("SEC") has provided guidance to issuers regarding the use of social media to disclose material non-public information. In this regard, investors and others should note that we announce material financial information via official Press Releases, in addition to SEC filings, press releases, Questions & Answers sessions, public conference calls and webcasts also may take time from time to time. We use these channels as well as social media to communicate with the public about our company, our services, and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, considering the SEC's guidance, we encourage investors, the media, and others interested in our company to review the information we post on the following social & media channels:
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