IQST - iQSTEL Receives Formal Offer For EV Subsidiary From Pre-IPO Company
June 09 2022 - 9:00AM
InvestorsHub NewsWire
New York, NY --
June 9, 2022 -- InvestorsHub NewsWire -- iQSTEL, Inc. (OTCQX:
IQST) today announced that the company has received a formal
offer to purchase iQSTEL’s entire electric vehicle (EV)
subsidiary. The offer values iQSTEL’s EVOSS Electric Vehicle
operation substantially higher than iQSTEL’s internal
valuation. The buyer is a US company that has filed an S-1
for an initial public offering (IPO) on Nasdaq. The iQSTEL
CEO, Leandro Iglesias addresses the offer in detail in a letter to
shareholders included in its entirety
below:
Dear
Shareholders:
I am pleased to
share with you that we received an attractive offer for the sale of
our Electric Motorcycle Business Division, EVOSS. A US
company that has filed an S-1 to list in an IPO on Nasdaq has made
a formal offer at a valuation that substantially exceeds our
internal valuation of EVOSS. The proposed transaction will be
subject to due diligence and the approval of
Nasdaq.
iQSTEL
Management and the Independent Board of Directors consider the
proposed acquisition a validation of the value of our company’s
electric vehicle business. The offer to acquire iQSTEL’s
electric vehicle business independent of iQSTEL’s
telecommunications business also demonstrates that it may be in the
best interest of iQSTEL shareholders for the company to pursue
separate Nasdaq listings for its telecommunications and electric
vehicle businesses. However, iQSTEL Management and the Board
of Directors believe it would be best to pursue such independent
Nasdaq listings directly and separate from any merger and
acquisition in order to minimize any potential dilution to
the iQSTEL shareholders and optimize the market valuation of each
separate business. Accordingly, iQSTEL Management and the
Board of Directors has decided to decline the subject
offer.
Alternatively,
the iQSTEL Independent Board of Directors has approved a strategy
to begin exploring a spinoff and independent Nasdaq listing of the
EVOSS Electric Vehicle business operation. Management and the
Board of Directors believe iQSTEL’s telecom operations (IQSTelecom)
may be eclipsing the value of the company’s EVOSS Electric Vehicle
business operation. The potential separation of the two
businesses would be intended to enhance the ultimate value of each
business by allowing each business to be valued as a pureplay
within its specific market.
iQSTEL is early
on in the exploration of a possible EVOSS spinoff strategy.
The final spinoff strategy may include mergers and acquisitions as
part of an overall strategy to grow and independently list the
EVOSS business on Nasdaq.
In the meantime,
iQSTEL continues in the execution of the existing EVOSS Electric
Vehicle growth strategy. Plans for a second batch of electric
motorcycles are underway and the company continues to develop
dealer and partner relationships in an expanding list of
countries.
I would like to
end this shareholder update with a reminder that iQSTEL is
positioned to endure the prevailing market conditions and continue
in the execution of our plan to achieve $90 million in revenue this
year with positive net income. We have adequate cash to avoid
any fundraising until next year. We are continuing to prepare for a
Nasdaq up-listing and will look for an opportunity to do so when
market conditions can support an organic increase in iQSTEL’s share
price to the Nasdaq minimum listing standard. In light of the
proposal we received for the EVOSS operation, iQSTEL can present a
strong argument that it has considerable underlying value yet
unrecognized by the market place. I remain confident in
iQSTEL’s future and that the best is yet to
come.
Sincerely,
Leandro
Iglesias
CEO
iQSTEL,
Inc.
About iQSTEL
Inc.:
iQSTEL Inc (OTCQX:
IQST) (www.iQSTEL.com)
is a US-based publicly-listed company offering leading-edge
Telecommunication, Technology and Fintech Services for Global
Markets, with presence in 13 countries. The company provides
services to the Telecommunications, Electric Vehicle (EV),
Liquid Fuel Distribution, Chemical and Financial Services
Industries. iQSTEL has 4 Business Divisions: Telecom, Technology,
Fintech and Blockchain, with worldwide B2B and B2C customer
relations operating through its subsidiaries: Etelix, SwissLink,
QGlobal SMS, SMSDirectos, IoT Labs, Global Money One and itsBchain.
The Company has an extensive portfolio of products and services for
its clients: SMS, VoIP, 4G & 5G international infrastructure
connectivity, Cloud-PBX, OmniChannel Marketing, IoT Smart Electric
Vehicle Platform, iQ Batteries for Electric Vehicles, IoT Smart Gas
Platform, IoT Smart Tank Platform, Visa Debit Card, Money
Remittance, Mobile Number Portability Application MNPA (Blockchain
Platform) and Settlement & Payments Marketplace (Blockchain
Platform).
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.
iQSTEL
Inc.
IR US Phone: 646-740-0907, IR Email:
investors@iqstel.com
Source: iQSTEL Inc. and its subsidiaries:
www.iqstel.com
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