Ukraine: QED Connect to Acquire AFON 2010

Holding company QED Connect will gain access to oil and gas licences in southern Ukraine through its acquisition of Ukraine-focused AFON 2010.

The acquisition will be QED's first foray into the oil and gas industry, the first of four acquisitions it has planned at the moment.

"As previously announced, QED Connect has three other pending letters of intent for the acquisitions of Terra Resources, Kuma Oil and Kyrzyg Alumina," President and CEO of QED Connect, Tom Makmann, said in a statement. "The company is in process of completing the definitive agreements for these transactions. The natural mineral resources industry presents a high growth opportunity for QED and the potential for increased shareholder value."

The acquisition of AFON 2010 is expected to take 120 days pending due diligence as well as to gain the approval of both the regulatory authorities and the board of directors of both QED and AFON.

In its statement, QED said that the acquisition was part of the company's strategy of targeting companies that are seeking either capital or management assistance or both to realise their business plans.

AFON agrees that the acquisition will assist the company in achieving its business goals.

"We are pleased to join the QED Connect organisation as it gives us greater resources to implement our roll out strategy and be able to develop the full potential of our oil and gas concession in the South Terenyans'ka territory," Director of AFON 2010, V. V. Yurchak, said.