Fusion Fuel Green PLC (NASDAQ:HTOO) has signed a binding agreement to acquire a 70% ownership interest in Quality Industrial Corp. (OTC:QIND), a Dubai-based energy services company.
QIND, whose operations are headquartered in Dubai, United Arab Emirates, is an industrial company specializing in the energy sector.
This acquisition is a significant step in Fusion Fuel's strategy to expand into both traditional and clean energy sectors, combining expertise in hydrogen engineering with Quality Industrial's gas and utility capabilities.
Under the terms of the deal, Fusion Fuel will issue a mix of 19.99% of its ordinary shares and convertible preferred shares; the transaction will result in Quality Industrial sellers holding a substantial stake in Fusion Fuel on a fully diluted basis. However, the preferred shares cannot be converted until approved by Fusion Fuel's shareholders.
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Quality Industrial operates Al Shola Gas, which provides services to over 40,000 customers in the Middle East, including major clients like Emirates Airlines and the Dubai Government. In 2023, Al Shola Gas reported $11 million in revenue and $1.8 million in net income.
Fusion Fuel views this acquisition as a way to strengthen its position in the energy market by integrating recurring revenue from Quality Industrial's established gas operations while expanding its hydrogen engineering services into the Middle East and Europe.
CEO Frederico Figueira de Chaves emphasized that this deal aligns with Fusion Fuel's long-term growth strategy despite challenges in the green hydrogen market.
Chaves added that as part of the combination of the two companies, John-Paul Backwell will join Fusion Fuel's Board of Directors upon closing. In addition, Alla Jezmir has resigned from the company's Board.
The acquisition is expected to close shortly, pending regulatory approvals.
Price Action: HTOO shares are trading lower by 4.11% to $0.3241 at last check Tuesday.
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