Feb. 12, 2013
/PRNewswire/ -- Management of QED Connect, Inc. (OTPInk: QEDN) today announced its business strategy for 2013, reiterating the Company's plans to move forward in the oil and gas sector in 2013.
During 2012, the Company announced the execution of several definitive purchase agreements and letters of intent to acquire resource companies based in the former
. The Company believes that the exploitation of the reserves held by these companies will lead to income of over
over the next few years provided that the Company is able to obtain the necessary financing.
In 2013, the Company's plans are as follows:
- Complete due diligence for the acquisition of AFON 2010. AFON 2010's leases have the potential to produce 119,000,000 barrels of oil, valued at $130 million. QED's financial projections show $45 million in revenue based on five wells and production of 500 barrels per day per well. Upon successful completion of the due diligence, we intend to close the acquisition per the purchase agreement signed in October 2012.
- Complete due diligence for Kuma Oil. Kuma owns oil and gas rights in the Russian territory of Perm Krai, where oil was first found in 1929. Perm Krai is one of the richest resource regions in Russia and has deposits of oil, gas, coal, mineral salts, gold, diamonds, bog iron ore, peat, limestone, precious and decorative stones, and construction materials. Kuma's proven and proven undeveloped reserves are valued at approximately $525 million. Upon successful completion of the due diligence, we intend to close the acquisition per the purchase agreement signed in January 2013.
- Sign a definitive agreement to purchase Terra Resources, which has oil and gas rights in the Republic of Kalmykia, a Russian territory. In August 2012, QED signed a non-binding letter of intent to acquire Terra Resources.
- Sign a definitive agreement to purchase Kyrgyz Alumina, a mining company in Kyrgyzstan, a former Soviet republic. As its name implies, Kyrgyz Alumina mines and produces alumina, the raw material used to produce aluminum. In August 2012, QED signed a non-binding letter of intent to acquire Kyrgyz Alumina.
In addition, the Company has several technology businesses that it is pursuing in 2013:
- Sofame Energy, Inc., a joint venture with Sofame Technologies, has sold the custom-designed "Hybrid Percomtherm®" boiler which recovers boiler flue gas heat from existing boilers and recycles the heat, thereby leading to overall energy efficiency. We hope to fund and finalize our joint venture with Sofame during the year.
- StockProfile.com, a customized platform showcasing emerging growth stocks to independent investors. In June 2011, QED Connect purchased 100% of the assets of StockProfile.com. QED hopes to convert StockProfile.com into a crowdfunding platform once the Financial Industry Regulatory Authority issues rules for licensing of these services.
- QED purchased a control block of the outstanding common stock of Yellow7, Inc. ("Yellow7") in December 2012. Yellow7 is an online marketing company that brings over thirteen years of innovation, technology, and creativity to the online industry, having developed memorable media and technologies for brand leaders such as DATCU Credit Union, MetlSpan, TIGI and more. Yellow7's multiple capabilities help its clients take full advantage of customized, and effective, online technologies. QED intends to use Yellow7's experience in online marketing to promote the business it is acquiring.
In announcing the above plans,
, CEO of QED, stated, "QED's name derives from the Latin phrase
Quod Erat Demonstrandum
, which means 'which was to be demonstrated.' Our plans for 2013 reflect this sentiment, as we plan to demonstrate to our shareholders our ability to generate income from our acquisition strategy."
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of QED to be materially different from those expressed or implied by such forward-looking statements. QED's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management infrastructure necessary to support the growth of its business; (iii) close the above acquisitions; (iv) competitive factors and developments beyond the Company's control; and (v) other risk factors.
For further information regarding QED's acquisition of Yellow7 stock, see the Form 8-K filed by Yellow7 with the Securities and Exchange Commission.