NEW YORK, NY, Nov. 14, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- iQSTEL Inc. (OTC PINK: IQST) today issued a letter to shareholders addressing concerns regarding financial statements and disclosures.
LETTER TO OUR SHAREHOLDERS
Dear Shareholders:
On behalf of management, I would like to present this letter to shareholders of our company. This fiscal year, from July 2017 to June 2018, has been a time of important transformations for iQSTEL Inc., which we believe has set the course of our future for the coming years. Undoubtedly, the most relevant one has been the acquisition of 100% of the capital stock of Etelix.com USA LLC on June 25, 2018.
Etelix.com USA, LLC is an international telecom carrier with an active history of 10 years providing International Long-Distance voice services to Telecommunications Operators (ILD Wholesale), and 6 years operating submarine fiber optic network capacity for internet (4G and 5G).
Among the most relevant events that took place during fiscal year 2017-2018 and subsequent days, we highlight:
CORPORATE SCOPE AND SECURITIES
• The acquisition of Etelix represents a radical change in our business model, moving away from the healthy snacks business and entering the telecom industry and thus becoming a Telecommunications Service company. We believe the telecom industry represents a better opportunity to create shareholder value, not just in the immediate but in the mid and long term.
• In order to better reflect our new identity we changed our name to “iQSTEL Inc.” and received a new CUSIP number: 46265G107, as well as a new trading symbol “IQST”. iQSTEL also adopted a new Standard Industrial Classification (SIC) Code: 4813, referred to Telephone Communications, Except Radiotelephone.
• We decreased our authorized common stock from 2,000,000,000 to 100,000,000 shares, and cancelled all authorized preferred stock.
• We changed management and our board of directors to better steer our company in its new business plan. Now iQSTEL has management and board members with more than 60 years of experience in the Telecommunications business.
• Given that we have adopted Etelix’s the primary line of business, we have relocated our principal executive offices to the same corporate headquarters of Etelix in Coral Gables, Florida.
FINANCIAL SCOPE
• With the acquisition of Etelix, we went from having no revenues, to reporting $9,621,015 in the fiscal year 2017-2018. We have averaged monthly revenue of approximately $1.3+ Million in the last quarter of the fiscal year 2017-2018.
• Analyzing the financial results of the 2017-2018 fiscal year, we are showing positive operating income, even though we had a net loss at the end of the year of $291,915, mainly as a result of $327,092 in interest expenses, corresponding to loans for a principal amount of $928,892, and a non-recurrent cost of $150,000 incurred in the legal expenses associated to the acquisition of Etelix.
OUR PLAN FOR THE FISCAL YEAR 2018-2019
• We believe that Etelix will continue to be our most important source of revenue. We expect a growth of 30% within the next fiscal year to reach a total estimated revenue of over $12.5 million.
• We plan to search out and analyze existing telecommunications companies as potential candidates for mergers, acquisitions or alliances. In addition to all the financial and legal aspects, part of the analysis is based on the existence of potential synergies with our current operations in Etelix, in order to expand our markets by increasing the presence in geographical regions in which we have little participation or by penetrating new segments like corporate or residential.
• In the 1Q of the 2019 calendar year, we plan to start our Blockchain project for Telecommunications, which we believe has the potential to generate a new source of income for iQSTEL in the fiscal year 2019-2020.
• An area of special attention will be financing sources for our cash requirements for the continual development of our operations. We plan to work on getting better terms to reduce the cost of financing. We also plan to seek additional financing in a private equity offering to secure funding for our merger and acquisition strategy.
FINAL WORDS
Our vision for the next 2-3 years is to consolidate iQSTEL into a corporation focused on Technology, Telecommunications and Internet with a global presence and strong sources of revenues within our focused areas and to generate positive operating results to maximize shareholder value.
We appreciate the reception we have had in this process of successful transformation of iQSTEL. We hope to continue counting on your support.
Best regards.
Leandro Iglesias
President/CEO
About iQSTEL Inc.:
iQSTEL (OTC: IQST) www.iQSTEL.com is a technology company offering a wide array of services to the Telecommunications Industry. These include services to International Long-Distance Telecommunications Operators (ILD Wholesale), Retail and Corporate markets (ILD Retail), Submarine Fiber Optic Network capacity, Satellite Communications services, Mobile Virtual Network Operator (MVNO) services, Internet of Things (IoT) technology solutions, Data Center facilities capacity leasing, and Blockchain solutions for the Telecommunications industry. iQSTEL fully owns Etelix.com USA LLC (www.etelix.com), a Federal Telecommunications Commission (FCC) licensed, international telecommunication carrier based in Miami, Florida. Etelix.com USA LLC was founded in 2008 and has been profitable since inception.
About Etelix.com USA, LLC:
Etelix.com USA LLC www.etelix.com is wholly owned subsidiary of iQSTEL Inc.
Etelix.com USA, LLC is a Miami, Florida-based international telecom carrier founded in 2008 that provides telecom and technology solutions worldwide, with commercial presence in North America, Latin America and Europe.
Enabled by its 214-license granted by the Federal Communications Commission (FCC), Etelix provides International Long-Distance voice services for Telecommunications Operators (ILD Wholesale), and Submarine Fiber Optic Network capacity for internet (4G and 5G).
Etelix was founded in 2008 and has been profitable since inception.
Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Puresnax International Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
iQSTEL Inc.
IR
US Phone: 646-740-0907
investors@iqstel.com
Source: iQSTEL Inc.