NEW YORK, NY, Feb. 20, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- iQSTEL Inc. (OTC PINK: IQST) today issued a letter to shareholders.
LETTER TO OUR SHAREHOLDERS
Dear Shareholders:
On behalf of our management team, I would like to present this letter to shareholders of our Company in order to explain details about an important event in the execution of our business plan and near future. Yesterday we filed Form 1-A (Reg A) with the Securities and Exchange Commission to begin the process of offering of 2,000,000 of common shares for IQST under the rules of the “Regulation A” financing.
Main objectives of the offering:
1) Fund Acquisitions: Currently, iQSTEL has executed 2 Letters of Intent (LOI) for the acquisition of 2 companies we have been pursuing since Q4 2018. Both of these acquisitions are expected to add to operating margin within the first months of acquisition.
2) Working Capital Increase: In order to dramatically reduce the cost of our financing expenses, we will increase our working capital by adding additional equity to the Company. This will allow us to continue our current organic revenue run-rate of $17 million and continue to increase our positive operating EBITDA levels for 2019.
3) Potential Uplist to OTCQB or OTCQX: As per a board decision made in December of 2018, it is management team’s mid-term goal to upgrade the Company to higher quality trading board. As a requirement, the Company would need to increase its current float from the current 75,000 shares to approximately 1,500,000 shares outstanding. The Company’s Reg A offering, if fully subscribed, would increase the float to 2,525,000 shares; representing 14.83% of the total issued and outstanding shares, thus realizing the required percentage of 10%.
4) Retire iQSTEL’s corporate debts.
Details of the offering:
a) Company offering: 2,000,000 common shares at USD 6 per share.
b) Shareholder offering: At the same time, Metrospaces Inc. is offering 450,000 common shares of its 6,136,848 total Shares. Metrospaces Inc. plans to use these funds to pay the remaining balance from Metrospaces’ original acquisition of Etelix.com USA LLC. We expect that further details will be provided by Metrospaces in a separate communication to its shareholders.
c) The company plans to subscribe initially this offering in the States of New York, New Jersey and Florida.
iQSTEL acquisition targets details:
1) European Telecom company: We plan to acquire 51% of the capital stock of a telecom company based in Europe. We believe this acquisition will complement the growing strategy of Etelix and should contribute to strengthen our strategic positioning in the International Long Distance Voice market, due to the level of specialization this target company has developed in the European market, where we currently have a minor presence. We estimate the acquisition of this company could add to iQSTEL around USD 6 Million in annual revenue (USD 100,000 operating EBITDA estimation).
2) Mid-Western Telecom company: Our plan is to Acquire 100% of the capital stock of this telecommunication service provider focused in the mid-west corporate market, offering unified communications solutions and large PBXs and IP-PBXs, among others products. This acquisition will give to iQSTEL access to the end customer’s segment, allowing an enriched offering of our portfolio of products and services. In our estimations, this acquisition could add to iQSTEL around USD 6 Million in annual revenue (USD 800,000 operating EBITDA estimation).
Estimated financial impact of iQSTEL’s offering:
Proceeds from this offering are expected to be used to continue to grow organically our day-to-day business in Etelix, and finalize the acquisition targets currently under agreements. The combination of this organic growth and the 2 acquisitions mentioned above, are expected to increase our current revenue to approximately $29 million in revenue and $1.6 million in operating EBITDA for the first 12 months after the acquisitions. This compares to iQSTEL’s revenue of approximately $13.7 million and approximately $600,000 in operating EBITDA for 2018. These figures are estimates only and we cannot guarantee this result.
We believe this offering will be an important piece in our continued quest to create shareholder value to iQSTEL. The 2 companies we plan to acquire have synergies with iQSTEL and Etelix on the administrative and marketing levels and we plan on cross-selling products and services. We believe that both these acquisitions will add positively to our earnings per share in the short term.
For more details of the offering, please consult the Form 1-A, filled in February 19th, 2019. Please feel free to contact us for any clarification at investors@iqstel.com.
We would like to express our appreciation for your trust in iQSTEL, and we look forward to building a World-Class Telecommunications and Internet Services Corporation with you onboard.
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.
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 iQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.