Through its growth-by-acquisition model, ILUS International Inc. (OTC: ILUS) is focused on acquiring and developing emergency services and safety technologies around the world. While the stock is trading near 52-week lows, the current ILUS stock price could be a bargain for long-term investors thanks to the company’s aggressive growth strategy. With several acquisitions planned and record revenue projections, ILUS stock forecast appears to be bright for 2023 and beyond. Considering that the company intends to share updates in Q1 and Q2, ILUS stock is one to watch closely over the coming months as it could soar.
January: ILUS Stock News
ILUS has already completed multiple acquisitions in 2021 and is kicking off the new year with a promise of four exciting announcements. Aiming to expand globally, the company has laid the groundwork to complete at least one acquisition per quarter. With this in mind, ILUS intends to establish a conglomerate of four to five NASDAQ listed companies which it has already reached pre-contract agreement on. Upon completing the agreement, this initiative is expected to generate a significant return on the ILUS balance sheet – which could push the stock’s value even higher.
As of now, ILUS is already in the final stage of two prominent technology company acquisitions – both of which could pave the way for greater success. By acquiring a prominent public safety VR and AR training software company, ILUS could be well-positioned to penetrate the $500 billion Metaverse market. Given that the target company is known for developing disruptive firefighting technology and has existing customers in seven countries, this acquisition could give ILUS a competitive edge in fire safety training within the Metaverse.
Aside from its ventures into the metaverse, ILUS is also in the process of acquiring a pioneering Unmanned Aerial Vehicle (UAV) company based in Germany. The target company is known for developing and manufacturing the first ever UAVs or Industrial Drones that deliver the unmanned capability of light helicopters. After finalizing prototypes, the company is currently undergoing a proof of concept for a project with an international aid organization and continues to garner serious interest from several aviation companies around the world. With an average projected valuation of $1.2 billion, this acquisition could prove lucrative for ILUS.
As anticipation brews ahead of the company’s annual shareholder meeting on the 28th, fintwit investors are speculating Emergency Response Technologies could be ILUS’ first target company positioned for a NASDAQ uplisting. Although the company is yet to confirm the news, investors are already feeling bullish given ILUS’ history of successful acquisitions.
In fact, one of the company’s major acquisitions – BCD Fire recently started operating on the second phase of the BURJ 2020 – bringing an additional $1 million to the company via its contract. The BURJ 2020 is a promising project that includes work on Dubai’s top commercial developments. Following this success, BCD Fire is targeting several other large contracts in the region including TakeLeap and Milanion. Meanwhile, Bull Head Products – a truck design and manufacturing company – is in the process of signing a $1.1 million contract in Mississippi and is positioned to take advantage of long-term ongoing contracts with a yet-to-be-disclosed prominent global vehicle company.
In addition, the company’s first acquisition – FireBug has recently announced the launch of the first handheld firefighting nozzle – Maxi A-1. The unique product is designed to extinguish most fire types including electric fires, fuel fires, flammable gas fires, and cooking oil fires. Standard firefighting nozzles are not capable of efficiently extinguishing many of those fire types without the use of added chemicals, giving Maxi A-1 a competitive edge over other industry players.
Backwell is bullish on the company’s efforts saying: “the US strategy is coming together nicely and the valuation of these ‘tech’ acquisitions will be mind-blowing.” He believes that the upcoming acquisition candidates “will put ILUS on track to deliver even more than originally planned for this year.”
Beside its success in the domestic market, ILUS is also working on an extremely promising European deal that involves long-term government supply contracts. Already approved at European government level, ILUS is planning on finishing two phases of the project before EOY. The first phase is expected to include the acquisition of a huge manufacturing site to develop a commercial electric utility vehicle (UTV) range – which could open a plethora of opportunities for the company’s growth.
Meanwhile, in the second phase, the company is planning on taking over existing government manufacturing facilities staffed with over 1500 employees. These facilities will be dedicated to developing vehicles for the military and emergency responders. Growth in Europe could lead to the company achieving higher revenues and getting closer to its aims of global growth.
To facilitate this and prepare for larger deals in the future, ILUS has been investing in upscaling its labor force with recent notable hires in the engineering, production, and operations departments. Furthermore, ILUS has been forming partnerships that complement its current acquisitions and ongoing strategy in the emergency response space.
February: ILUS Stock News
*Update on February 16th, 2022
Having already completed several acquisitions, ILUS has assured investors it has plans to acquire many more companies from different emerging industries. As of February 15th, the company announced its acquisition of Georgia Fire and Rescue Supply – a renowned distributor of firefighting and emergency response equipment. This marks ILUS’ first distribution acquisition and is the first step in expanding the company’s technology across North America.
This acquisition is already looking promising given that the acquired company has zero debt and an annual turnover of $3.5 million. Additionally, the company has several exclusive Georgian distribution contracts for the sales and servicing of global firefighting equipment brands – including Holmatro, Innotex and Paratech. Georgia Fire is also bringing in an experienced 7-member sales team – all of whom are retained firefighters with technical knowledge and experience within the industry and a solid understanding on how to penetrate the US market.
Currently, the acquired company is operating from its 6,000 square foot distribution warehouse. However, to facilitate further expansion, ILUS has plans to move Georgia Fire into a 15 thousand square foot distribution facility with a showroom and a dedicated vehicle yard. Managing Director – John-Paul Backwell is “excited to welcome Georgia Fire to the family as it marks the beginning of the company’s real “boots on the ground” US rollout.”
The company is now in a strong cash position to deliver on its current and future plans given that it recently signed three funding deals for a total of $15 million. The company secured funding after a period of extensive due diligence by the funders – RB Capital, Discover Fund, and Luki Ventures – all of which are known for funding high-growth tech companies.
Brett Rosen – RB Capital’s Managing Partner – highlighted his belief in ILUS saying: “We invest in people and their teams, and Link is the type of leader we believe can move the company forward with the right capital behind him.” Truly, CEO Nick Link believes this funding will drive the company’s “overall aggressive growth and acquisition strategy as we remain focused on protecting the best interests of our shareholders and our long-term sustainability.”
To ensure shareholder value, ILUS emphasized that no dilution will occur as a result of this funding – which was secured through repayable, 1-year term, non-toxic promissory notes. This funding includes a cash warrant option for an additional $6 million – should the company require it. As of February 15th, the company has confirmed it has received the first two rounds of funding and expects to receive the third round before EOM.
Additionally, ILUS plans to utilize some of the funding to remove the GPL Ventures, LLC debt and discard them as a noteholder from the company. With this in place, the company could be well-equipped to expand its operations, ramp up marketing and production and also complete its next round of acquisitions.
Following this, ILUS confirmed that phase 1 of its Southeastern Europe deal is expected to close by EOM and that the company expects to receive massive subsidies within the next few weeks. Upon the deal closing, ILUS will be moving into a large government facility – which will facilitate greater production and R&D of the company’s brand new 2023 commercial EV range. At this rate, ILUS is well-positioned to take pre-orders for new vehicles by May 2022 and aims to take orders for up to 500 cars between then and EOY.
To prepare for this growth, the company has been working on improving its share structure. From its originally 1.2 billion OS, ILUS is currently undergoing a 180 million share reduction – 40 million of which will be canceled and the other 140 million are of the CEO’s common shares and will be transferred to a preferred share category. Following this, the company intends to issue three blocks of restricted shares for its previously completed acquisitions, however, outstanding shares will still remain within the 1.2 billion region and the company has assured investors of its efforts to reduce it to nearly 1 billion – including an opportunity for shareholders to lock up shares in a preferred category.
Currently, the company’s BOD is in discussions regarding upcoming acquisitions. Back in January, ILUS acquired Vira Drones – an Unmanned Aerial Vehicle (UAV) company based in Germany and Switzerland. Most known for its world first technology that delivers the unmanned capability of light helicopters, Vira is on track to become the world’s leading cargo and rescue drone manufacturer and is well-positioned to capitalize on the $13 billion light helicopter market in the process.
Vira’s two major competitors have already achieved valuations of $1.2 and $1.3 billion. However, the acquired company still has a competitive advantage given it has already created and tested 3 prototypes and has applied for several patents. This acquisition will allow ILUS to integrate its technology into its emergency response solutions and any other upcoming acquisitions. To facilitate this, ILUS is now focused on registering additional 10 patents as well as obtaining 3 type approval certificates. By doing this, the company could be well-positioned to receive aviation certification that could enable Vira Drones’ UAVs to fly commercially in inhabited areas.
The company’s managing Director highlighted that this is “one of several exciting deals that we have been working on in-line with the technology advancement strategy”. Additionally, Link is bullish on ILUS’ direction going forward given that “the valuation of this acquisition is mind blowing and it will play an important role in accelerating many of our upcoming plans.” In light of this, he assured investors that the company has a detailed roadmap for growth and that more deals will be announced soon.
Delivering on this, the company announced its sixth strategic acquisition days later. By acquiring KurveXR from TakeLeap – a futuristic technology company which creates artificial intelligence and machine learning solutions, ILUS is positioning itself as a player in the $500 billion metaverse market. This acquisition will enable the development and delivery of training solutions for public safety – ranging from fire and community safety to emergency response and corporate onboarding. Through that, ILUS could be well-equipped to become the first company to offer fire safety training in the metaverse.
ILUS’ CEO believes the addition of KurveXR to the company’s portfolio complements the recent acquisition of Vira Drones and allows the company to further advance its disruptive technology. He is bullish that “another acquisition will rapidly expand and achieve an extraordinarily high valuation.”
As of now, ILUS is planning several spin offs and is working on its first up listing. Given that ILUS plans to hold a 50-80% share of each up-listed company, investors are bullish the company could witness major financial growth in 2022. In light of this, ILUS‘s CEO highlighted the company’s commitment to “not only building a conglomerate but also ensuring that the creation of further value for shareholders along the process.”
March: ILUS Stock News
*Updated March 23rd, 2022
Aiming to grow internationally, ILUS is preparing to launch its renewables subsidiary – Replay Solutions – in Dubai and Serbia in Q2 as well as the US in Q4. The subsidiary’s operations will be initially based on urban mining with plans to add more assets to ILUS’s new division.
Urban Mining
With the world looking for green technologies and solutions for extracting precious metals, Replay Solutions is set to capitalize on this need through its urban mining business. Through this, the company will recover precious metals from disposed electronics and treat them mechanically and chemically to produce new electronics without damaging the environment. Through its government contracts, Replay has already acquired a significant and consistent supply of raw materials to develop and implement the extraction and refinement of these precious metals.
Considering the rising demand for electronics has led to a shrinking supply of precious metals, ILUS’s renewables division is in a great position to capitalize on this expanding need. Studies have found that 7% of the world’s gold can be found in discarded electronics thanks in part to the 200 million cell phones thrown away in the US every year. In addition, studies in 27 countries have found that unused cell phones contain $2.5 billion worth of gold. In light of this largely untapped market, ILUS could witness major growth as its new business rolls out.
US Expansion
As for its US expansion plans, ILUS intends to operate through a franchise business model which will allow the company to have a centralized regional refining center in each state with several franchises supporting the regional refining center. According to this model, the franchisees will handle the collection of the state’s raw materials before delivering them to the regional center for the refinement process. ILUS’s management has achieved major success through this business model in the past and believes it will achieve similar success using it to facilitate this refinement process.
Lithium Recycling
On top of this, ILUS plans to start a lithium recycling plant in its Serbia site to take advantage of the increasing demand for lithium batteries. To facilitate these plans, the company held talks with several companies which supply the world’s largest automotive manufacturers with batteries for their electric vehicles. So far, these companies have acknowledged their dwindling supplies and have shown a willingness to get their lithium supply from Serbia.
Currently, ILUS expects its plant machinery to be delivered to both its Dubai and Serbia sites in the near future, with operations scheduled to begin in May.
Middle East Expansion
Considering the high demand for ILUS products across the Middle East, the company’s subsidiary BCD Fire is in the process of getting the required permits to distribute its fire alarm cable in the region. The subsidiary is also in the final stages of securing an OEM supply contract with an international fire alarm cable producer.
As a part of its plans to further expand in the Middle East, ILUS has recently opened a new office in Dubai to accommodate 75 staff members. At the same time, ILUS is exploring options for establishing offices and facilities in Riyadh, Saudi Arabia due to the increasing demand for the company’s products. ILUS also aims to secure contracts related to the $500 billion Saudi Arabian NEOM project.
The NEOM project is the start of a new smart city the Saudi government plans to build along the Red Sea. It will function as a tourist destination with revolutionary technology and new policies as envisioned by Mohammed Bin Salman according to the Saudi Vision 2030. Currently, the first phase of the project is scheduled to be completed in 2025.
With oil prices increasing, ILUS has been negotiating with oil and gas customers in the Middle East to provide its fire safety products to capitalize on this price increase. Considering its relationship with the region, ILUS’ subsidiaries witness major revenue growth in when oil prices increase. In light of this and the increasing demand for its defense vehicles due to the conflict in Ukraine – ILUS stock forecast 2022 is looking pretty bright.
April: ILUS Stock News
*Updated April 1st, 2022
EV Technologies
As part of its European Phase 1 deal, ILUS acquired a manufacturing facility in Čačak, Serbia for ILUS EV Technologies – its first investment in the country. Through this facility, ILUS plans to manufacture its E-Raptor electric utility vehicles for commercial use in addition to EV component parts. With six different vehicle types, the E-Raptor will range from the 4×2 L7e to the top 6×6.
ILUS has chosen to operate in Čačak due to the city’s support of technology companies and its excellent location. With proximity to sea and airports, the city’s location will assist ILUS in selling its E-UTVs across Europe at minimal cost. Additionally, Serbia’s construction, labor, and energy costs are significantly lower than the rest of Europe. Combined with the government’s generous subsidies to companies located outside the capital of Belgrade, ILUS could record higher revenues thanks to its new facility.
Considering that the EV industry is growing rapidly, ILUS projects its new investment will generate hundreds of millions over the next 8 years. Link is bullish “this is ultimately to the greater benefit of ILUS and its shareholders” and promised “further information on the site and deal structure once the final administration is completed”.
To facilitate the expansion of its businesses on all fronts, ILUS is set to showcase its fire and rescue technologies at the world’s largest fire and rescue convention – FDIC International – in April. At this convention, ILUS will present technologies from its Emergency Response Technologies division – including vehicles and equipment from FireBug, Georgia Fire & Rescue Supply, and Bull Head Products. Additionally, the company intends to include a new firefighting equipment and vehicle company which the company plans to acquire in time for the convention.
Audit and Uplisting
The exposure this convention could bring to ILUS and its line of products could help bolster its revenue this year and bring more attention to the stock. But in terms of its finances, ILUS has appointed AJSH & Co as its auditors and expects to release its 2021 annual report this summer upon the completion of its audit. It is worth noting that AJSH & Co is known for uplisting a number of OTC companies to the NASDAQ.
Following the audit, the company will apply to uplist to the OTCQB as ILUS CEO Nick Link believes that “listing ILUS on the OTCQB will only attract even further interest from institutional investors and larger private investors.”
Recently, ILUS updated its shareholders on the status of its share structure and promised to make it visible on April 1st. Despite plans for a 180 million share reduction, the company still reported 1.2 billion OS. However, ILUS assured its shareholders that the share reduction is ongoing as the company still aims to reduce its OS to 1 billion shares.
*Updated April 26th
Communicative as ever, ILUS conducted a shareholder question and answer led by John-Paul Backwell – ILUS Managing Director. Over the course of the meeting, Backwell answered questions provided by the ILUS discord.
Plans for the Second Quarter
Since then it has shared its plans for Q2, giving a timeline for its name change and uplisting process. According to the company, its audit is underway and following its release the company will follow through on its official name change from “Ilustrato Pictures International Inc” to ILUS International Inc. It also expects to submit its filing for Q1 on May 15th which will document its acquisitions of Vira Drones, KurveXR, and Georgia Fire and Rescue Supply.
However, in Q2 it will mainly focus on its’ Emergency Response Technologies (ERT) subsidiary which was formed only six months ago. The current acquisitions or technologies within this subsidiary are FireBug, The Vehicle Converters, Georgia Fire and Rescue Supply, Bull Head Products, the rescue drones from within the Vira Drones range, as well as the VR trainings from KurveXR.
To sustain this subsidiary’s growth, the company has plans for multiple acquisitions – some of which have already been discussed. One of these upcoming acquisitions will be a wildfire company with sales in 70 countries and the second is an emergency response communications company. In addition to these, ILUS is already conducting its due diligence on a potential acquisition with over $100 million in annual revenue.
On that note – when asked in the Q&A how ILUS goes about an acquisition, Backwell explained that after a series of meetings evaluating an acquisition target, the company typically makes an offer equivalent to 30 – 70% of the company’s value to be paid on closing. The balance is then paid 12 months after closing as an aggregate payment. This happens if the company meets certain targets set by ILUS. For larger acquisitions, the deal may be structured over a period of 2 to 5 years but would also depend on the company meeting the targets specified as part of the acquisition.
However it depends on each company’s unique plans and while ILUS may offer convertible preference shares as part of the deal, these shares can only be sold after one or two years with a “leak out” clause potentially added to the agreement. Backwell went on to say that ILUS does not disclose all the details of the payment structure of these acquisitions so that potential, future acquisitions do not have set expectations based on ILUS’ previous acquisition agreements.
Meanwhile, ILUS appears set to act on its previous plans for establishing a defense division. Considering that the company has already been manufacturing firefighting equipment and vehicles for the defense sector, it is ready to become a more established player through a significant defense acquisition. According to the company, this acquisition target is “strategically aligned with revolutionary technology and has a large pipeline of global sales”.
Share Lock Up
The company also shared its plans to give shareholders the option of locking up shares of ILUS stock in a preference category. As a result of this share lock up, the company expects a reduction in its outstanding shares but will be releasing the details of this decision in the coming weeks. Shareholders will have the opportunity to indicate interest in locking up their shares of ILUS stock in the coming weeks and the share lock up which will begin in Q2.
Investors are excited for what this could mean for the company however there is a lot to consider in terms of how this share lock up could affect ILUS stock and incentives related to Emergency Response Technologies and other ILUS subsidiaries.
Renewables
In addition to its Emergency Response, Integrated Systems, and Defense subsidiaries the company will be forming a Renewables subsidiary which will incorporate Replay Solutions. This urban mining business will commence operations from Serbia and Dubai during Q2 and the US in Q4.
Having established its core management team and its plant machinery for scaling on the way, Replay Solutions expects to have its sites in Serbia and Dubai fully operational by the start of May 2022.
Integrated Systems
Seeking a position in the US market from which to establish its own fire suppressions systems, ILUS has signed an LOI to acquire a fire suppression system company in Florida which generates roughly $3 million annually. Thanks to its regional ties, this acquisition target provides its services to well-known clients such as Universal and has recently been awarded significant new contracts. Currently it assembles, installs, and maintains fixed fire suppression systems for international hotel and restaurant chains but ILUS hopes to introduce its own water mist fire suppression technology in the US through it in the future.
As is, this acquisition will work with FireBug Technologies to accelerate its fire suppression product development and could complement the company’s Middle Eastern fire protection systems acquisition, BCD Fire, as well. On that note, ILUS’ team appears especially bullish on the acquisition and Backwell shared that he believes it is “poised to double its revenue year on year” at its current pace.
KurveXR
ILUS acquired KurveXR – a developer of public safety Virtual Reality and Augmented Reality solutions – in February and recently provided an update on the company’s developments so far. ILUS was eager to bring this company under its umbrella thanks to its applications for fire safety, emergency response, community safety, security, defense, and corporate onboarding. ILUS is interested in applying KurveXR’s technology to all sectors of the Emergency Response Management cycle and took ownership of 6,000 custom digital assets for training software through this acquisition.
ILUS notes that KurveXR has seen demand for its first aid and fire safety modules from potential customers such as international organizations, global hospitality brands and senior government officials. Now, KurveXR is developing modules for several military training scenarios, disaster management, wildland firefighting training, structural firefighting training, and rescue training
Based on contracts in discussion and contracts awarded, KurveXR is expected to surpass ILUS’ revenue expectations for its first 2 years. Notably, the company is expected to secure a health and safety training contract for more than 30 independent schools in the UAE. In light of this increased demand, KurveXR is building out its software development team in the UAE and South-eastern Europe.
Uplisting
With a number of significant acquisitions underway and plans for more, its clear that ILUS is working towards its goal of uplisting to a major stock exchange. Due to this goal, ILUS is reorganizing its various subsidiaries and has registered several entities in Delaware, including Emergency Response Technologies Inc, Vira Drones Inc, FireBug Technologies Inc, KurveXR Inc, E-Raptor Technologies Inc and ILUS Industries Inc. These different entities are designed to manage the subsidiaries and develop self-sufficient management teams to incubate the subsidiaries – creating an overall, comprehensive structure for ILUS as it works to uplist.
However, ILUS notes that despite these efforts it is running “slightly” behind schedule for its first planned participation on a major stock exchange. The company pointed to the complexity of the acquisition deals it is currently considering as part of the reason for the delay but also indicated that these deals “have increased the valuation potential of its subsidiaries”. This update comes as ILUS continues searching for its potential board members.
Due to its plans for uplisting, ILUS is also in discussions with several investment banks and “will announce the investment bank that it has chosen to partner with for its participation on a major stock exchange” once its reached a decision.
May: ILUS Stock News
*Updated May 26th, 2022
Major Acquisition
Given ILUS’ growth strategy of acquiring profitable companies, the company had its biggest acquisition so far after agreeing to acquire a large process equipment manufacturer which reported upwards of $100 million in revenues last year. This acquired company is mainly focused on the oil, gas, and utilities industries, while also manufacturing firefighting equipment for special projects. Given the acquisition’s focus, ILUS intends to structure the acquisition as part of its Emergency Response Technologies subsidiary.
Through this, ILUS will be able to increase its production of large vehicles and fire fighting systems for the oil and gas industries while taking on the acquired company’s existing clients. As a provider of heavy engineering solutions and turnkey solutions, the acquisition target has several large multinational companies as customers – a very promising sign for ILUS.
In this way, ILUS could build its reputation globally to secure more deals and contracts in the future. As is, the acquisition target is expected to achieve $200 million in revenues this year and if ILUS completes the acquisition – which is now in its second phase of due diligence – it could be well-positioned to report record revenues upon the deal’s completion.
Based in the Middle East, the acquisition target will help bolster ILUS’ operations in the region which could prove to be pivotal for its future growth. While not much is known about the acquisition target, more details are expected to be released after ILUS completes the contractual process which is expected to be concluded in approximately thirty days. However, the acquisition target is likely a large company considering it has facilities extending over 10 million feet.
ILUS’ management is especially bullish on this development as Managing Director – John-Paul Backwell – shared that “The addition of such enormous manufacturing capability and revenue will be an incredible development for ILUS,” leading the company’s CEO to comment that “we believe the agreement represents a significant leap forward for ILUS and its Shareholders.”
A key step towards building the ILUS conglomerate and delivering on its plans for its Emergency Response Technologies subsidiary, this acquisition has excited ILUS shareholders who are bullish that ILUS stock will be due for a major run once the OTC market recovers from this downturn.
However, there appears to be more on the horizon for ILUS since there are several other planned developments which are nearing completion in the company’s pipeline.
ERT Spinoff
This acquisition appears in line with the company’s spinoff and uplisting plans for ERT which it discussed at its shareholders’ meeting saying “ILUS confirmed that it does not plan on taking any division such as ERT to NASDAQ without substantial revenue, hence the $100m+ acquisition which would take place in conjunction with the up listing.”
On this note, ERT recently updated its Twitter profile and tweeted “T-Minus…” – a sign of the company’s progress towards the spinoff. Following this, ILUS appointed well-known law firm Lucosky Brookman LLP to assist ERT in its future plans. It is worth mentioning that Lucosky Brookman is considered to be a leader in helping OTC companies uplist to the NASDAQ or NYSE. Considering the companies under ERT’s umbrella, the subsidiary could be a profitable standalone company after the acquisition of this company generating over $100 million in revenues.
June: ILUS Stock News
*Updated June 15th, 2022
Wikisoft Corp. Acquisition
Following through on its plans to spinoff ERT, ILUS’ subsidiary acquired a controlling share of SEC reporting company Wikisoft Corp. (OTC: WSFT). According to this deal, Link became WSFT’s chairman and a number of ILUS’ board members joined WSFT’s BOD. Moreover, WSFT is currently in the process of changing its name and ticker symbol to reflect its acquisition by ERT.
This acquisition was an important step forward for ILUS which has since launched the website for ERT. According to its site, ERT is a public safety mergers and acquisitions company focused on acquiring and growing public safety companies. Because ERT owns innovative and disruptive technology solutions, its able to meet the growing need for increased international emergency response and defense. ERT highlights that it not only owns firefighting technology, but “autonomous vehicle, virtual reality, and augmented reality technology with built in AI for the defense and public safety sectors”.
ILUS has also appointed ERT’s new CEO – Dan Peters. Well-known in the firefighting industry, Peters brings more than 30 years of experience in senior leadership roles in emergency response and manufacturing. On that note, Peters was previously the President of Rev Fire Group, E-One, Collins Bus Company, and Akron Brass Company. In light of Peters’ extensive experience leading companies, Link is bullish this appointment “will allow JP and myself to focus on the very exciting short and medium-term growth plans we have for our other ILUS subsidiaries”.
As ILUS highlighted in its earlier PR, ERT would acquire a fully reporting Special Purpose Vehicle (SPV) aka WSFT. Then the company generating $100 million in revenue would reverse merge into the SPV – becoming a part of ILUS’ ERT subsidiary in the process. This process could help ERT list on the NASDAQ more quickly since WSFT is an OTCQB company that is already fully reporting. With the addition of this acquisition generating millions in revenues, ERT would be in a better position to uplist. It’s believed that because ERT is still a subsidiary of ILUS, the revenues reported will still be included on ILUS’ balance sheet.
Renewables Subsidiary
ILUS recently gave an update regarding its Renewables subsidiary which is currently made up of an urban mining company – Replay Solutions – and its commercial electric utility vehicle unit – E-Raptor. The company is looking to acquire a battery manufacturing company generating $20 million in annual revenue to add to this subsidiary and is currently in the final stage of its negotiations.
The company see’s the potential for synergies between this battery manufacturer and the other units of this subsidiary due to the company’s unique assets. As is, the acquisition target designs and manufactures several types of batteries and is also preparing to roll out its own lithium battery product. Since Replay Solution processes lithium, minerals, and plastics, these materials can be used in the acquisition target’s manufacturing process to “substantially reduce” costs.
In addition to selling the developed batteries to its existing customers, ILUS has highlighted the opportunity to use batteries manufactured and developed by the acquisition target for its range of EVs as well as for drones. This acquisition appears to be part of ILUS’ aggressive growth plans for not only its renewables subsidiary but for its Unmanned Aerial Vehicle and Defense subsidiaries as well.
According to ILUS’ management, they will continue to add strategically aligned and valuable assets to the company as they work to build the conglomerate and develop the ERT subsidiary further.
July: ILUS Stock News
*Updated August 5th, 2022
Quality International Co.
With the company planning to take the $100 million acquisition under its ERT division, WSFT signed an LOI to acquire 51% of UAE based Quality International Co Ltd FCZ. For 20 years, Quality has been providing solutions in several lucrative industries including oil and gas, energy, as well as offshore and public safety. Since Quality has all the required oil and gas industry certifications, the company has an impressive portfolio of customers including Shell, BP, Chevron, and Total. Considering the high demand for Quality’s solutions, the company has 1350 employees operating from its 10 million square feet facilities. Since WSFT is ILUS’ subsidiary, ILUS could be in a prime position to further expand its business in the Middle East.
With this in mind, ILUS could be well-positioned to continue growing financially as Quality already has $75 million in orders in production in addition to $230 million in confirmed orders. As WSFT is set to acquire 51% of Quality, the company expects to realize more than $100 million in revenues this year. For this reason, WSFT will provide Quality with cash investment over a period exceeding one year after closing the deal, in addition to restricted preferred shares which are tied to lock up and leak out clauses. Meanwhile, WSFT will have the right of first refusal to purchase these shares back from Quality’s shareholders.
Upon the closing of this deal, ILUS and Quality will work together to expand each other’s business. Based on this, ILUS will work to expand Quality’s offerings in North America and Europe. At the same time, Quality will provide ILUS with facilities as well as engineering and manufacturing capabilities for ILUS’ precision engineering public safety technologies in the Middle East. Moreover, ILUS will gain access to Quality’s oil and gas customer database which will allow ILUS to offer the products and services of its other subsidiaries to these companies. In light of this, ILUS stock could be poised for substantial growth in the coming quarters.
August: ILUS Stock News
*Updated August 5th, 2022
Q2 Revenues
Considering the scale of the company’s Q2 operations, ILUS shared that it has reported $19.6 million in revenues for that period – representing a 553% increase from its Q1 revenues. At the same time, ILUS’s assets increased significantly in Q2 thanks to its acquisition. In light of this growth, ILUS is confident it could be on track to achieve its revenue projections for the year of $140 million. With investors anticipating the release of the company’s full report by August 15, ILUS stock could be primed to soar.
Meanwhile, ILUS updated its shareholders on its ongoing audit sharing that it is in the final stages of completing its audit. Upon completion, ILUS intends to file its Form 10 with the SEC to become fully reporting, file for its name change, and apply to OTC Markets to uplist to the OTCQB. In light of these plans, ILUS stock could be a bargain at its current PPS,
Quality Industrial Corp.
As for its subsidiary, WSFT received approval for its name change to Quality Industrial Corp. and ticker change to QIND to better reflect its business direction. Based on this, QIND could be close to finalizing the much-anticipated acquisition of Quality. With this in mind, this would allow ILUS to report further financial growth in the future since ILUS could report all the revenues and assets of its subsidiaries.
September: ILUS Stock News
*Updated September 20th, 2022
Upcoming Acquisitions
With the company targeting further financial growth, ILUS is currently in the final stages of due diligence for five acquisitions and has already signed LOIs with the targets. These acquisition targets include 2 wildfire equipment manufacturers, a fire protection installation company, as well as 2 defense technology manufacturers – one of which is generating revenues. In addition to these acquisitions, ILUS is in talks to acquire more companies which brings its total acquisition targets to 13 companies. If these deals are closed, ILUS anticipates achieving its revenue goals for 2022 and 2023. Based on this, many investors are confident ILUS stock could become one of the best long-term holds in the OTC.
Wildland Firefighting
Considering the LOIs to acquire the wildfire equipment manufacturers, ILUS intends to bring both companies under ERT’s umbrella with the aim of making the subsidiary a global leader in the wildland firefighting technology scene. Both companies are already well-renowned wildfire equipment manufacturers and have the most extensive global distribution network. Looking to drive more growth for this business, ILUS plans to open a new cutting-edge manufacturing facility in Serbia to include the manufacturing of wildland firefighting equipment and specialist vehicles.
ILUS also intends to support this endeavor with two additional specialist engineering and manufacturing acquisitions in the US and the UK which are currently in the final stages. Since these acquisitions could set ERT up for significant growth in this industry, ILUS could be well-positioned to become one of the most profitable conglomerates in the future.
ILUS Suit
Meanwhile, ILUS launched a new wearable technology project through a JV with a world-leading haptic suit manufacturer. Through this JV, ILUS intends to launch the ILUS suit for defense and emergency response training and monitoring. This suit utilizes big data and advanced AI technology to train and protect warfighters and first responders where the software technology of the suit is being developed by ILUS’ subsidiary KurveXR.
During training scenarios, the ILUS suit provides real-world feedback and monitoring capabilities. As for virtual reality training scenarios, the suit allows trainees to feel their surroundings while providing real-life stimuli and haptic feedback mimicking weapon recoil or the kick from a firefighting nozzle. Meanwhile, the suit’s sensors record motion for performance monitoring which is pivotal in defense and emergency response settings.
In light of these features, this suit could allow ILUS to capitalize on the growth of the virtual reality training market which is expected to exceed $5 billion by 2026 for defense only. With this in mind, ILUS has multiple companies and organizations interested in the suit and plans to conduct prototype testing with these parties later this year. Following this prototype testing, ILUS intends to showcase its suit’s capabilities at the Intersec Exhibition in Dubai which is scheduled for 17 – 19 January 2023. Given that this suit is designed for use in virtual and live environments, ILUS could become a global leader in the haptic suit industry if its suit is as advanced as advertised.
Uplisting
With the company planning to uplisting to the OTCQB, ILUS shared positive news as it completed the audit of its 2020 and 2021 financials. By completing its audit, ILUS is preparing to file its Form 10 with the SEC this month to become fully reporting. After the Form 10 is deemed effective, ILUS plans to change its registered name and apply for an uplisting to the OTCQB. In tandem with this uplisting, ILUS is also working on uplisting its subsidiary ERT to the NASDAQ or the NYSE. With this in mind, ILUS intends to announce a major investment bank it has been working with to facilitate ERT’s uplisting this month and plans to share its plans to uplisting its subsidiary.
In relation to the investment bank announcement, ILUS also plans to share an update regarding a planned share lock-up and share buy-back which could add significant value to shareholders. As these major catalysts are approaching, ILUS stock has the potential to soar this month as more updates are released.
Funding & Convertible Debt Repayment
Looking to add value to shareholders, ILUS was able to settle two promissory notes with GPL Ventures (GPLV) each worth $500 thousand. ILUS was able to settle this convertible debt through an agreement between RB Capital Partners (RBCP) and GPLV as a part of a $5.6 million funding received by ILUS from RBCP. After settling this debt, ILUS plans to use these funds to finance its expansion plans including the completion of its agreed acquisitions. Meanwhile, $1.1 million of these funds were received by Quality Industrial Corp. (OTC: QIND) to make the first tranche payment for its in-progress acquisition. With the company having enough funds to facilitate its growth plans, ILUS appears to be on the right track to achieve financial growth in the coming years.
2023: ILUS Stock News
*Updated February 9th, 2023
SEC Filer
With the company looking to uplist to the NASDAQ, ILUS filed its form 10 successfully with the SEC which has become effective in December 2022. As the company is now fully SEC reporting, ILUS intends to apply for uplisting to the OTCQB to improve its visibility to a larger group of investors. Moreover, ILUS plans to submit an application to FINRA for its name change to ILUS International Inc. Given that these applications usually take 60-90 days to materialize, ILUS stock could be one to watch closely this quarter in anticipation of these catalysts.
ASSS Acquisition
ILUS has also been actively growing its business over the past months and has agreed to acquire a 51% stake in Al Shola Al Modea Safety and Security LLC (ASSS) for $714 thousand to be paid in tranches. An already profitable fire safety company in the UAE, acquiring ASSS is a major move by ILUS as it continues growing its fire safety business in the Middle East region.
In this way, ASSS and BCD Fire are expected to work alongside each other to secure a significant market share in the UAE fire safety sector. With this in mind, both companies have licenses, certifications, manpower, experience, and relationships in the region which could positively reflect on ILUS’ revenues in the future. On that note, ASSS is experiencing rapid growth and projects to realize $4.5 million in revenues this year based on its current order book and sales pipeline. In light of this, ILUS stock could prove to be a profitable long-term hold given the company’s continuous expansion efforts.
With this in mind, ASSS holds the highest licensing and certifications to operate as a main contractor in the UAE. Considering that BCD Fire operates as a sub-contractor in the region, both companies could now secure larger contracts and reduce project completion timeframes. Based on this, ILUS’ fire safety business in the Middle East could be well-positioned to soar as the company now has the required capabilities to enter into large projects in the region. On that note, ILUS has already been negotiating several large contracts in the region. Considering ASSS’ experience and manpower, ILUS could be poised to secure these contracts which could open up a plethora of growth opportunities for the company in the future.
At the same time, acquiring ASSS allows ILUS to roll out its fixed water mist suppression systems in the region thanks to ASSS’ technical design and installation experience. With this in mind, ILUS intends to have both of its fixed water mist suppression systems certified to LPCB and NFPA standards during the early part of this year. Given the company’s growth potential in the Middle East fire safety sector, ILUS stock could be a profitable long-term hold as it continues to move forward with its growth plans.
2023 Projections
Meanwhile, ILUS recently shared its projections for 2023 that included some encouraging numbers for the company’s shareholders. In terms of revenues, ILUS expects to realize $200 million from its current businesses. Moreover, ILUS anticipates more than $180 million in additional 2023 revenues from potential acquisitions with signed LOIs or in advanced negotiations. If the company is able to deliver on these projections, ILUS stock could be poised for major long-term growth – making it one to watch closely this year.
In addition, ILUS plans to roll out four subsidiaries through SPAC deals to complete acquisitions without further diluting its existing shareholders. With this in mind, ILUS’ ERT subsidiary plans to increase its US vehicle and equipment manufacturing through planned acquisitions. At the same time, Replay Solutions – ILUS’ renewables subsidiary – is in talks to acquire an established waste recycling company with operations in Europe, the Middle East, and Africa. As for its defense subsidiary – Hyperion Defense Solutions, the subsidiary was successfully incorporated and is currently in advanced negotiations for its first acquisition out of three acquisition targets. With the company promising to share exciting updates in Q1 and Q2, ILUS stock could be one to hold onto in anticipation.
ILUS Stock Financials
2021 Report
According to its recent annual report, ILUS is showing significant financial progress. Recording total assets of $31 million and a net income of $13.9 million, the company has roughly $176 thousand in cash on hand. It’s worth noting that the company operated at a net loss of $160 thousand only a year ago so this progress is substantial. If ILUS succeeds in acquiring the company reportedly making over $100 million in annual revenue, then ILUS’ will be in a particularly strong position for uplisting.
Despite this progress, shareholders are anxious for ILUS to follow through on updating its share structure. According to an update on March 21st, ILUS expected its share structure to be updated at the start of April, however, its profile has yet to reflect this change.
Once its 180 million share reduction is complete, the company expects its OS to remain near 1.2 billion due to the issuance of three blocks of restricted shares for acquisitions. However, the company will continue working towards reducing its OS to 1 billion. At the time ILUS reported an OS of 1.26 billion shares and an AS of 2 billion.
Q1 Report
Looking at ILUS’ Q1 report, the company had its best quarter so far in terms of financial growth. ILUS reported a record $3 million in revenue due to its lucrative acquisitions. Despite these record revenues, this report did not include the revenues of ILUS’ subsidiaries Georgia Fire & Supply, KurveXR, Vira Drones, and Bull Head. As the revenues from these acquisitions are integrated into ILUS’ balance sheet, the company could be due for explosive growth in the coming quarters.
ILUS also recorded a net income of $636.6 thousand and a gross profit of $1,859,080. The company has $34.3 million in assets – a major increase from the $19.8 million reported Q1 2021. As is, ILUS’ total liabilities amount to $15.4 million and it has $479,129 cash after generating $271.9 thousand from its operations.
After its Q1 success, ILUS is bullish on its prospects for QoQ growth since the third and fourth quarters are often the strongest for businesses in the manufacturing and distribution industries.
Q2 Report
In Q2 ILUS continued to show encouraging financial results highlighted by its revenue growth to $19.6 million compared to $2.8 million a year ago. At the same time, ILUS reported a gross margin of $5.8 million which has led the company to operate at a net income of $1.1 million. In addition, ILUS grew its balance sheet and reported $55.3 million in assets compared to $24.4 million in Q2 2021. However, liabilities increased from $8.3 million to $34.5 million with $25.9 million in current liabilities.
Q3 Report
Looking into ILUS’ Q3 report, the company reported substantial YoY growth in terms of its assets as it has $77.2 million in assets compared to $26.9 million. However, ILUS’ cash balance slightly declined over the same period from $335.3 thousand to $305.8 thousand. Meanwhile, liabilities increased YoY to $54.7 million compared to $10.1 million. As for revenues, ILUS reported significant growth YoY to $20.4 million compared to $3.1 million. Based on this growth, ILUS increased its gross profit to $6.8 million from $881.1 thousand. In light of this, ILUS was able to grow its net profit YoY from $391.1 thousand to $1.1 million.
Media Sentiment
@Yenom99 is bullish on ILUS’ projections for 2023.
@Modrnerapharaoh is waiting for ILUS’ potential NASDAQ uplisting as it could be undervalued currently.
Technical Analysis
ILUS stock price is currently at $.0628 and has supports near .0604 and .0568. The stock also shows resistances near .0686, .0742, .0817, and .0948. Although ILUS recently dropped near its 52-week low, the stock appears to be rebounding off this bottom. With the stock holding its 50 MA support, ILUS could be poised to run in the near term as many investors believe the stock may be undervalued at the current PPS. Given that the company intends to share news in Q1 and Q2, ILUS’ current PPS could be a bargain for long-term investors.
In light of ILUS’ upcoming catalysts, accumulation is trending upwards. Meanwhile, the MACD is bullish to the upside but could be approaching a crossover. The RSI recently picked up from 48 to 54 indicating that ILUS stock price has enough upside potential to run on positive updates. ILUS has an OS of 1.3 billion and a float near 1.1 billion.
ILUS Stock Forecast
With ILUS finally becoming fully SEC reporting, investors are increasingly bullish on the company’s uplisting plans in the near future. As the company plans to submit applications for its OTCQB uplisting and name change, ILUS stock could be poised to soar on both catalysts. Since these catalysts usually take 60-90 days to materialize, ILUS stock price could be well-positioned to appreciate in value this quarter.
Considering ILUS’ acquisition of ASSS, the company appears to be on the right track to secure a significant market share in the Middle East fire safety sector thanks to ASSS’ capabilities. As ASSS and BCD Fire are expected to work alongside each other to secure large contracts, ILUS could be set for a major revenue boost this year. Additionally, this acquisition could add a new revenue stream for ILUS since the company could now roll out its fixed water mist suppression systems in the Middle East region. In light of this acquisition, ILUS stock could be a profitable long-term investment as the company continues growing its presence in the Middle East.
Investors are also bullish on ILUS’ projections for 2023 where the company expects to realize $200 million in revenues from its current businesses. With the potential to add a further $180 million in revenues from acquisitions under LOIs or in the final stages of negotiations, ILUS could be set to report record revenues this year. Given that the company intends to provide updates regarding its endeavors in Q1 and Q2, ILUS stock forecast appears to be brighter than ever.
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