QIND Strengthens Market Position Through Al Shola Gas Expansion in Middle East Energy Sector

2025-12-31 10:32:25

Capitalizing on Established Gas Distribution Operations

Quality Industrial Corp. (OTC PINK:QIND), a dedicated manufacturer and service provider across industrial, oil and gas, and utility sectors, has completed a strategic expansion into the UAE’s energy landscape through its 51% interest acquisition in Al Shola Al Modea Gas Distribution LLC (Al Shola Gas). This move positions the company to leverage an established operational platform with significant growth potential in the Middle East and African markets.

Al Shola Gas: A Proven Operating Foundation

Headquartered in the United Arab Emirates since its establishment in 1980, Al Shola Gas operates as a specialized engineering and distribution enterprise serving the gas sector. The company has built a substantial operational footprint serving commercial, residential, and industrial customers. Current operations include:

Fleet of 50+ trucks providing bulk gas supply and distribution
10,000 residential gas supply contracts and 570 commercial supply contracts
93 full-time personnel managing daily operations
2023 financial performance: $11 million in revenue and $1.8 million in net income
Minimal debt burden with approximately $600,000 in bank borrowings

The company functions as a leading regional contractor for centralized gas pipeline systems and a major LPG cylinder distributor across its service territory.

Transaction Structure and Governance

On March 27, 2024, QIND finalized a definitive Stock Purchase Agreement with Al Shola Gas shareholders, acquiring a controlling 51% stake. The transaction grants QIND operational control through majority board representation, including the Chairman seat. An option to acquire the remaining 49% exists within a two-year window, providing flexibility for full integration.

Strategic Growth Pathway

With operational control secured, QIND is targeting expansion opportunities in two primary areas. First, the company is pursuing promising centralized gas pipeline engineering and supply contracts throughout the Middle East and African regions. Second, Al Shola Gas is expanding its LPG bobtail truck fleet, directly addressing high customer demand for bulk gas supply in the region.

Corporate Developments and Forward Planning

QIND filed its Form 10-K Annual Report on April 8, 2024, following the termination of a prior acquisition agreement (disclosed via Form 8-K on April 5th). Al Shola Gas’ financial results will appear in QIND’s consolidated quarterly reporting beginning with the Form 10-Q filing scheduled for or before May 15, 2024.

Additionally, QIND is engaged in discussions with a National Exchange listed company regarding a potential Reverse Triangular Merger. The company has signaled intent to withdraw its previous S-1 Registration Statement with the SEC, with a corresponding S-4 filing expected following execution of a Business Combination Agreement. Shareholder exchange ratios and valuations will be determined by independent financial experts providing fairness opinions.

This announcement and Al Shola Gas’ strong operational metrics reflect QIND’s commitment to building a diversified portfolio of revenue-generating assets in strategic energy markets.

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