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Sunday, July 3, 2022

Debt Agreement Boosts Iqstel Inc (OTCMKTS: IQST)

Iqstel Inc (OTCMKTS: IQST) has seen a surge in price and trading volume after the Company announced it has reached a definitive agreement with Labrys Fund extending the terms of the previous promissory note thereby stopping further conversions. This is huge news for IQST as the debt conversions was the primary factor in keeping the pps so low.

IQST has already attracted a significant shareholder base that has been accumulating. The Company is an emerging player in the international telecommunications business and already boasts very significant revenues

Iqstel Inc (OTCMKTS: IQST) bills itself as 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.

Through its wholly-owned subsidiary, Etelix offers international long-distance voice services for Tier-1 worldwide telco carriers and submarine fiber optic network capacity for data carriers and internet service providers both land-based and mobile (4G and 5G). Based in Miami, FL. Etelix.com USA, LLC is a wholly owned subsidiary of iQSTEL. Etelix was established in 2008 and holds a 214 FCC-issued international telecommunications carrier license. iQSTEL in addition to collaborating with the growth and development of the business of its subsidiary Etelix, iQSTEL is planning to expand its services to the retail market offering International Long-Distance voice communications to Corporate, Small Business and Individuals, supported in part on its current infrastructure. iQSTEL is also exploring to enter in new business areas and markets, such as Satellite Communications; Mobile Services under the figure of a Mobile Virtual Network Operator (MVNO); Internet of Things (IoT) solutions and Data Centers. These new ventures will be developed either through M&A, or through strategic partnerships. iQSTEL is already allocating resources to develop a project of Blockchain Payment Solution to facilitate the settlement of exchanged traffic among international carriers based on smart contracts.

In January IQST announced a record breaking year for its wholly owned subsidiary Etelix.

Mr. Iglesias, the Company’s CEO, stated: “The growth of our main and wholly-owned subsidiary Etelix continues to grow organically, well within the Company’s estimates. For the FY-2019 the Company finished with $16,327,870, an increase of 18.5% versus FY-2018. The main drivers for this growth have been excellent operational execution, as well as our continued quest for better pricing for our clients. The Company is now finalizing the final quarter revenue and operating profit for our recently acquired European subsidiary, Swisslink, which once consolidated will increase the Company’s consolidated revenue and operating profit considerably. We expect to have final revenue numbers in the coming March. Based on our excellent continued level of execution, we expect revenue and operating profit for our consolidated VoIP business to continue on a very robust growth rate through 2020 and the coming years.”

IQST also announced its 51% Swiss subsidiary generated over $5.6 million in revenue for 2019.

Mr. Iglesias, the Company’s CEO, stated: “The acquisition strategy we have set out for iQSTEL is showing early success. This vertical acquisition has been key since it gives us bare-bottom-cost-based voice routing interconnection into European cities and major carriers we did not previously have. Additionally, we have been able to quickly implement synergies in our admin, IT and operating departments. This acquisition and integration has been not only strategic in allowing us to provide cross-selling opportunities with Etelix, but more importantly, we believe it enhances our carrier network backbone, which we expect to be fundamental as we step up cross-selling opportunities with soon-to-be-announced services and acquisitions in other horizontal strategic solutions in the 5G, blockchain-based carrier payment, as well as DID portability space. Full-year revenue on an additive basis for both subsidiaries reached $21,938,503 for 2019. We expect organic growth in these 2 subsidiaries to be in the 20-30% YOY, but more importantly, will be the backbone of our transitioning into a full-service cloud-based 21st century communications provider in the near and mid-term.”

On February 12 IQST announced the execution of an acquisition agreement for an SMS Business. A new 51% owned JV is being created for this business acquisition. SwissLink Carrier AG is a Switzerland based international Telecommunications Carrier founded in 2015 providing international VoIP connectivity worldwide, with commercial presence in Europe, CIS and Latin America. SwissLink Carrier AG is a Swiss licensed Operator, having a domestic Interconnect with Swisscom, allowing their international Carrier Customers direct terminations via SwissLink into all Switzerland Fix & Mobile Networks. Since the takeover from Swissphone in November 2018 and the rename into SwissLink, they operate on a profitable level.

On February 14 IQST announced a definitive agreement signed with Labrys Fund extending the terms of the previous promissory note thereby stopping further conversions.

Mr. Iglesias, the Company’s CEO, stated: “As of February 13, 2020, the Company had matured and due obligations of $892,626 with Labrys Fund. The terms of the original promissory note allowed for conversions upon maturity. However, the Company has successfully reached a refinancing agreement with Labrys Fund extending the payments for about 16 months. As is typical with convertible promissory notes, a pro-rated share reserve is being set up with the transfer agent as a guarantee to the debt holder, further detailed in the 8-K. This new agreement allows for existing cash flow to meet the payment requirements so as to avoid further dilution or the share reserve being used. With our recent revenue generating SMS asset acquisition and subsequent JV formation, QGlobal SMS, we look forward to 2020 being a strong growth year across all our brands and wish to thank Labrys Fund for working with us to secure this refinance,” continued Mr. Iglesias, the Company’s CEO.

Currently trading at a $1.3 million market valuation IQST has little cash, $5 million in assets and $10 million in current liabilities which has caused significant dilution in the past. IQST is also a revenue powerhouse generating $4,172,547 in sales for the 3 months ended September 30, 2019 up from $3.7 million for the same period last year. IQST is an exciting story developing in small caps – the Company just announced another important acquisition and the stock has liquidity, a significant shareholder base behind it accumulating and a hold on any new blocks of stocks coming into the market. We will be updating on IQST on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with IQST.

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Disclosure: we hold no position in IQST either long or short and we have not been compensated for this article.

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