MANCHESTER, N.H., Aug. 2, 2012 /PRNewswire/ -- QED Connect, Inc. ("QED Connect") (OTC Pink Sheets: QEDN) today announced that it has entered into letters of intent (LOI) to acquire 100% of Terra Resources and Kuma Oil, both oil and gas companies, and Kyrzyg Alumina, an aluminum mining company.
Terra, through its subsidiary company NV Alliance, has oil and gas rights in the Republic of Kalmykia, a subject of the Russian Federation. Kuma Oil, a Russian company, owns oil and gas rights in the Russian territory of Perm Krai. The companies currently operate and own multiple wells and perform drilling, pumping, and transportation through the commercial distribution system. Terra and Kuma have combined proven oil reserves of 570 million barrels with an estimated value of approximately $2 billion. The companies also have future exploration rights in their respective territories.
Kyrzyg Alumina owns mines containing the raw material necessary to produce alumina (aluminum oxide). After extracting the compounds, the alumina is subjected to electrolysis in a solution of cryolite, which is composed of sodium aluminum fluoride. Five hundred metric tons of alumina can yield approximately $500 million in revenue. Aluminum is one of the most ubiquitous manufacturing materials of the industrialized era and this commonplace metal has tremendous potential as an ecological fuel source.
Victor Prediger, CEO of Magna Resources Corp., the holding company for Terra and Kuma Oil, stated, "We have been looking for a partner to help us obtain working capital and provide a presence in the US. QED Connect is well positioned to support our business plan and our goals to maximize the potential of Terra and Kuma Oil. We are very excited to be working with QED Connect to move these projects to the next level."
Michael Roth, CEO of Kyrzyg Alumina commented, "Aluminum represents the second most popular commodity in the world. Companies with reserves are in a good position to capitalize on this growing demand. We have been seeking a partner to help obtain the necessary working capital to begin our mining operations and we believe that QED Connect can provide the resources required to support our operations."
Tom Makmann, President and CEO of QED Connect commented, "Terra and Kuma Oil offer QED Connect the opportunity to participate in the oil and gas industry. We have been working to expand into other industries and are excited about the opportunity these companies bring to QED Connect. A typical oil well in Kalmykia produces up to 1,000 barrels a day, which can have the potential of contributing greatly to QED Connect's financial performance." Mr. Makmann added, "With aluminum reserves in limited supply, we are very enthusiastic about the potential that Kyrzyg Alumina can bring to QED Connect, thus increasing shareholder value."
The definitive agreements are expected to close within the next 75 days pending due diligence and approval of any regulatory agencies and each company's respective board of directors.
QED Connect is continuing its strategy of acquisitions, investments, and strategic business alliances and expects to finalize its current investments during the fourth quarter of 2012. We are focusing on businesses that are producing revenue and are seeking capital and/or management assistance to execute their business plan. QED Connect looks for companies that are synergistic and/or offer the opportunity to develop a business in a market that has growth potential.
QED Connect's current investments and joint ventures include:
- 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. The company experienced an increase in order activity receiving six contracts for a total value of $1.94 million. The orders were from a food processor, a hospital, a yeast producer and a College in Colorado.
- Nazz Productions, a movie producer. Nazz's feature film, "Good Day For It", won Favorite Feature at the 2011 Sonoma International Film Festival and opened theatrically in Los Angeles in July and available on DVD and video on demand.
- 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.
As a result of its continued success in the mergers and acquisitions arena, QED Connect is considering becoming a "business development company" as defined under the Investment Company Act of 1940.
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 Connect, Inc., (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company'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) obtain the financing necessary to complete the acquisition of Nazz, (iv) competitive factors and developments beyond the Company's control; and (v) other risk factors.
For More Information Contact - firstname.lastname@example.org Tom Makmann (603) 425-8933
SOURCE QED Connect, Inc.