That update falls under the "It's about TIME" category as far as I'm concerned...For quite a while now it's seemed to me as if the fire safety and control aspect of the company's operations has taken a back seat to other ventures envisioned by Mssrs. Link and Blackwell globally--and living in a fire zone like I do (CA), my original enthusiasm as an investor in ILUS has taken a beating in recent months since it's looked to me as if other objectives have been addressed ahead of establishing a fire safety footprint here in the United States--and elsewhere...
More concerning to me, though, is the post directly below--which seems to indicate that the OTC has downgraded us back to Pink Current status and delaying our upgrade to the QB trading platform pending paperwork that would spell out possible share structure (or other) changes that could result from the acquisition of Quality International...This is not good, and I'm agreeably surprised that our stock price (so far) hasn't taken a bigger hit because of this unforeseen OTC roadblock...
Quality Industrial Corp. Comments on OTC Markets actions
6:50 am ET September 15, 2022 (Accesswire) Print
SAN FRANCISCO, CA / ACCESSWIRE / September 15, 2022 / Quality Industrial Corp. (OTC PINK:QIND), was at 2.19 pm EST on September 14th informed by OTC Markets that the company will be moved from the OTCQB market to the Pink Current market effective September 15, 2022.
The company reapplied to OTC Market as per OTC market standards on June 16th due to the change of control announced June 2nd where Ilustrato Pictures International Inc; (OTC: ILUS) acquired the control position of the company. The company is fully compliant and has responded to all requests from OTC markets in a timely manner with the required information.
Notwithstanding, OTC Markets yesterday informed the company without prior notice and time to remedy, that the company would be moved to the Pink Current market, effective from September 15, 2022. The decision was based on the company's pending acquisition of Quality International Co Ltd FCZ, whereby a Binding Letter of Intent has been signed as confirmed by the company's filing, and the respective attorneys for both parties are now ironing out the terms of the Securities Purchase Agreement for completion of the acquisition. OTC Markets stated that "the acquisition may result in a significant change to the company's share structure, control persons, and financing arrangements. For this reason, we determined to not proceed with processing the OTCQB application until the acquisition is completed or otherwise concluded."
OTC Markets expects QIND to prematurely adjust the company's share structure by prematurely creating and modifying the designations of the preference categories before finalization of the Share Purchase agreement. These preference categories are subject to variances such as without or without voting rights and/or with or without dividends etc. These aspects cannot be confirmed prior to the final Share Purchase agreement being ready for signature and while the attorneys for both parties are finalizing the details, which includes the final number of preference shares to be issued. This is a completely unreasonable requirement and OTC Markets as it's a current judgement call on a future activity and they have not allowed any opportunity for discussion and clarification on the matter. QIND is also in the process of completing additional deals, with these expected to close soon, therefore QIND's management must consider these factors to ensure that the correct issuance of preference shares without creating duplicate work or confusing actions for shareholders. QIND has been and continues to remain fully compliant with all aspects of OTCQB qualification.
QIND Chairman, Nick Link, commented: "Whilst this matter has no direct impact on our operating business and growth plans, including our ability to execute the deals we are busy with, we know it can cause unjust harm to our Shareholders and it is unreasonable that the OTC would act so unprofessionally, without providing sufficient time for discussion or adequate warning of their impending thought process. It stands to reason that we are considering legal action. We expect to be moved to OTCQB again once the relevant disclosure is provided or sooner should OTC Markets come to their senses before then. We will urge OTC Markets to handle the reapplication swiftly to ensure shareholder protection and we are extremely confident about the short, mid, and long-term success of the business and shareholder value."
