Metrospaces Issues December 2017 Shareholder Letter


NEW YORK, NY, Dec. 21, 2017 (GLOBE NEWSWIRE) -- Metrospaces, Inc. (OTC PINK: MSPC) today issued a letter to shareholders explaining the current state of projects for 4th Quarter, with revenue guidance on Etelix and New Projects in consideration.

LETTER TO OUR SHAREHOLDERS

To Metrospaces, Inc. Shareholders:

The turnaround plan we set out at the beginning of 2017 has been achieved with still a few important events waiting in the pipeline before year-end.  If we are to close on the expected events, 2017 will turn out to be the best year Metrospaces has had since inception, not just in revenue and earnings but also in new projects in the pipeline.  Regardless of the new projects however, the 2017 turn-around plan has been achieved and executed almost to a perfection.  We realize that some shareholders are disappointed at how slowly we have been able to bring our financial filings current.  However, bringing our Company current is an expensive and time-consuming ordeal that has been difficult to focus on.  Even though the turn-around has been successful, it has taken all our capital and management time to achieve.  We will however, continue on our path to achieve current status on all our financial filings and keeping our shareholders informed of our achievements.  We thank our current shareholders for staying with us through these difficult times, as we are certain that much better times lie just ahead.  We foresee continuous revenue and EBITDA growth from our majority-owned Etelix, as well as bringing new real estate projects in the US online during the next few quarters.  We are very encouraged about our potential real estate projects in the US, as the recently Senate-approved US Tax Law will help in the continuation of a very strong market in the US, particularly in NYC we are now focused.

Etelix USA.com:  Our majority-owned Etelix will finish 2017 with $8M in revenue, beating our long-held expectation of $7.5M by an ample margin. EBTIDA margin continues to improve as we foresee year-end EBITDA margins above 5-6%.  Our net income, however, will be affected by newly acquired 3rd party debt that was used to fuel revenue and EBITDA growth, as at least 6 major international carriers were acquired as new clients. Etelix will finish the year with YOY revenue and EBITDA growth of over 100%, and we foresee that growth at least through 2018 as new capital is injected in the company and we continue to acquire new major telcos as clients.  This acquisition turned out to be much better than expected.

Real Estate Projects in the US:  The Company is currently in final due-diligence stage to acquire, in partnership, 2 sites in the city of Brooklyn for new construction residential condo developments. We expect at least one or perhaps both acquisitions to close before year-end 2017 although, nothing is certain. One of the projects is located in the high-end neighborhood of Williamsburg in Brooklyn and consists of a new construction residential building of 7 units with a total projected sell out of $12M.  The other sites is located near Prospect Park and consist of a luxury 22-unit residential project with total potential sell out of $38M.  Both projects have operating margins of over 40%, potentially. Brooklyn is currently considered to be one of the nation’s strongest housing markets and is expected to continue its growth through the coming years.   

Ikal Lodge and Winery: Our Ikal Lodge and Wine business continue to be a stable source of cash flow. Even though final revenue is determined at year-end, due to final pricing agreement with buyers, we expect final revenue to be at approximately $330,000 for 2017, while generating approximately $110,000 in EBITDA. This year we launched our premium wine brand, Premium Ikal.  Premium Ikal will start selling in the US first quarter of 2018, as have already begun shipments to Houston.  We bottled 20,000 units of this new premium wine in the middle of 2017. Ikal Lodge and Winery is a 75-hectare wine based hotel and vacation home project, located in Mendoza, Argentina. The amazing project consists of a 25-master suite luxury hotel, a world-class winery and 29 luxury villas that will be sold under fractional ownership. March began the annual wine grape harvesting season, as we have done in the past 3 years, we sold our entire wine harvest to our long-lasting clients Pernod Ricard and Los Haroldos.  This year, our focus has been on turning around our business plan away from the Venezuelan operation to US-based businesses and real estate projects.  However, we expect 1Q of 2018 to refocus a good part of our effort in launching this amazing business. Once the real estate project is complete, total revenue from the sale of the villas is expected to be at approximately $70-90 million, with and EBITDA of about 45%. For more information, please see: www.ikal1150.com.   

Quarterly and Annual Filings:  Due to the serious setback in our Venezuelan operation and business plan, all resources had to be directed to money-generating business acquisitions and growth funding, thus leaving little cash and human resources to our quarterly and annual financial filings.  Nonetheless, we expect to start bringing our quarterly filings up to date within the next few weeks. It has been an enormous effort to refocus the business plan to the US, leaving little financial and human resources for much else. We expect that the most difficult part of this effort is behind us, which will start freeing up cash and human resources for our filings and other such activities.  We thank our shareholders for their patience in that sense, and for their continued belief in the company and management team.

 Other investment highlights:

JV Agreement with Proideas (http://proideas.com.ar/): This JV agreement will allow Metrospaces a partnership with a very prominent private equity group in Argentina, just as the country begins a new economic shift to a more pro-market environment.  This partnership will bring not just new deal flow to the company, but more importantly will also bring in fresh financing for the company’s current projects.

 JV Agreement with Prohotels of Argentina: In its refocusing of the company's business plan to hotel development, Metrospaces has executed a JV Agreement with Prohotels (http://www.prohotels.com/). This partnership gears itself perfectly with the company's development and financing skills. This agreement calls for the development of 4 new hotels in the coming 3 years. It is a testament to our business plan execution.

 Again, we want to thank all our new shareholders for taking an interest in our story and have given us the chance to be where we are at! We will continue to work very hard to make your investment in our company a success, and have very high expectations for 2017 and beyond!

About Metrospaces:

Metrospaces (www.metrospaces.net) is a publicly traded real estate investment and Development Company which acquires land, designs, builds, and develops then resells condominiums and Luxury High-End Hotels, principally in urban areas of Latin America. The company's current projects are located in Buenos Aires, Argentina, and Caracas, Venezuela.

Six years ago Metrospaces shareholders saw a unique opportunity to participate in several exciting property markets around the world. Through their worldwide network of highly recognized real estate entrepreneurs, the company was able to capitalize on unique real estate development opportunities. Since inception the company has leveraged those relationships along with extensive financial expertise and transformed excellence by results.

Metrospaces is a boutique real estate development company, a product of the alliance of Metrospace shareholders, along with an elite group of real estate professionals and entrepreneurs located around the world. Company shareholders have extensive careers in real estate financing worldwide, and have funded projects both in the Americas and across Europe valued in excess of US $450 Million.

Metrospaces' majority shareholders have partnered with Investors on Elite properties including The London BLVGARI 5 Star Hotel, and are currently involved in negotiations for the development of several Elite luxury properties in South America.

Among Metrospace partners are Architects, Real Estate Developers, Agents and Attorneys of the highest standing, with extensive experience in the global property market.

Metrospaces was originally founded by company President Oscar Brito.

Relevant Links: 

http://metrospaces.net/
http://www.prohotels.com/
http://www.ikal1150.com

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 Metrospaces, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.



        

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