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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): September
12, 2024
iQSTEL Inc.
(Exact name of registrant as specified in its charter)
Nevada |
000-55984 |
45-2808620 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
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300 Aragon Avenue, Suite 375
Coral Gables, FL 33134 |
33134 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (954) 951-8191
________________________________________________
(Former name or former address, if changed since last
report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions:
|
[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425) |
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[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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[ ] |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: None.
Indicate by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. [ ]
SECTION 2 – Financial
Information
|
Item 2.02 | Results of Operations and Financial Condition.
|
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We have issued a shareholder letter concerning our discussions with investment
banks for an uplist to a national exchange, our anticipated revenue results for 2024, our strategic plans and other matters.
The shareholder letter is furnished with this Current Report on Form 8-K
as Exhibits 99.1. The information furnished under this Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including Exhibit 99.1,
shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any registration statement or other filing
under the Securities Act of 1933, as amended, regardless of any general incorporation by reference language in such filing, except as
shall be expressly set forth by specific reference in any such filing.
SECTION 9 – Financial Statements and Exhibits
|
Item 9.01 | Financial Statements and Exhibits. |
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Exhibit No. |
Description |
|
99.1 |
Corporate Presentation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
iQSTEL Inc.
/s/ Leandro Iglesias
Leandro Iglesias
Chief Executive Officer
Date September 12, 2024
IQST - iQSTEL Meets Top Investment Banks in New York in
Conjunction with Nasdaq Uplisting Objective
NEW YORK, Sept. 12th, 2024 --
iQSTEL Inc. (OTC-QX: IQST) (www.iQSTEL.com), a US-based, multinational, fully reporting, and audited publicly listed telecommunications
and technology company, preparing for a Nasdaq uplisting, today released details regarding the company’s leadership team visit to
New York last week. The company engaged in productive discussions with five investment banks specializing in supporting small-cap companies
with market capitalizations below $500 million. Each of these banks expressed a strong interest in partnering with us, recognizing the
significant potential in iQSTEL's growth trajectory and our journey towards uplisting to Nasdaq.
During these meetings, management shared
the company’s strategic vision, plans for future growth, and recent substantial developments. We also discussed strategies to enhance
and expand shareholder value, focusing on consolidating divisions, rebranding, and leveraging the Nasdaq uplisting to position iQSTEL
on a much more substantial exchange, adding credibility and recognition our company now deserves.
To provide our valued shareholders a
clearer picture of our path forward, we’ve summarized the core message of our presentation in the following letter:
Dear Valued Shareholders,
As we reflect on our remarkable journey
and look ahead to an exciting future, I invite you to join us as we continue building on the success of iQSTEL. Our company, rooted in
decades of experience in the telecommunications industry, has achieved exponential growth since its inception. With your continued support,
we are poised to reach new heights.
Our Story: From Inception to Innovation
iQSTEL’s journey began with deep
roots in the global telecommunications sector. My CFO, Alvaro Quintana, and I spent years managing international business at major telecom
subsidiaries, Alvaro at Telecom Italia’s DIGITEL, and myself at Verizon’s Cantv. Together, we bring over 50 years of combined
experience in international voice, SMS, fiber-optic, and satellite connectivity. Throughout our careers, we built strong business
and personal relationships with the largest players in the telecom arena, further cementing the foundation for iQSTEL’s success.
This wealth of knowledge and personal relations became the foundation for what would later become iQSTEL.
In 2008, we co-founded Etelix
with a focus on international voice services, leveraging our expertise and network to establish a strong foothold in the industry. By
2018, we transitioned into a publicly traded company, recognizing that this path would provide us access to capital markets, fueling the
exponential growth we had envisioned. Today, iQSTEL stands as a leader in international telecommunications, constantly evolving and expanding
into new, innovative areas.
Enhancing Shareholder Value
During our recent meetings with five
investment banks in New York, we discussed our strategic initiatives for increasing shareholder value, including the consolidation of
divisions, a comprehensive rebranding strategy, and the anticipated Nasdaq uplisting. The move to Nasdaq will place iQSTEL on a substantial
exchange that brings added credibility, enhanced exposure, and broader access to investors, further driving shareholder value as we continue
to scale our operations.
Explosive Growth and Strong Momentum
In 2018, iQSTEL generated $13.8 million
in revenue. By 2023, we had reached $144.5 million, a tenfold increase in just five years. Our forecast for 2024 is set at $290 million,
with $134 million already reported in the first half of the year. Historically, the second half of the year shows stronger results, reinforcing
our confidence in achieving our forecast.
This rapid growth is a direct result
of a strategic blend of acquisitions, ventures, and organic development. Since 2018, we have completed 11 acquisitions and ventures,
primarily in telecommunications, carefully selecting companies that complement our existing portfolio and bringing in top industry executives
to drive further expansion. In 2023, we reported $144.5 million in revenue, with $50 million—one-third of the total—coming
from organic growth. For 2024, we expect to achieve $290 million in revenue, with $90 million in organic growth, again accounting for
one-third of the total forecast.
Our Executive Strength: A Deep Bench
of Global Expertise
At iQSTEL, our success lies in our ability
to integrate acquisitions and the top executive team as partners into our broader strategy, allowing synergies to propel organic growth.
Today, we have 100 employees spread across 20 countries, operating in 17 time zones, and our business serves major telecom players like
Verizon, T-Mobile, Telefonica, Telecom Italia, British Telecom, Deutsche Telecom, Vodafone, Millicom, Orange, Etisalat, China Telecom,
among others.
Our executive team not only brings over
250 years of combined experience in telecommunications and international business, but also boasts deep connections with major companies
worldwide. This structure allows us to take on significant new business without adding additional management, ensuring scalable and efficient
growth as we continue to expand globally.
Our presence is global, with offices
in Miami, Venezuela, Argentina, UK, Switzerland, Turkey, and Dubai. We maintain more than 400 high value network interconnections around
the world, delivering international voice, SMS, and connectivity services that form the core of our business.
Strategic Focus on High-Margin SMS
Services
Our current telecom voice services generate
an 8% gross profit, while part of our SMS portfolio offers over 20% in gross margin. Over the past two years, we have rapidly developed
this high-margin SMS portfolio, making it a key focus of our growth strategy. By increasing sales in this segment by just 10%, we can
achieve the equivalent of a 25% increase in our voice services. A key justification for acquiring QXTEL was the SMS portfolio it brings,
which aligns perfectly with our strategy to prioritize higher-margin products. This shift positions us to steadily grow our operating
income while maintaining our current business trajectory.
Selective and Strategic Acquisitions
and Ventures
In acquiring our 11 subsidiaries and
ventures, we carefully selected targets that added, focusing on adding top executives in the international telecom arena while gaining
high-value in terms of products, strategic customer relationships, and expanding our international footprint. This approach has allowed
us to establish a strong business position and maintain a high quality of service across the U.S., Latin America, Europe, Africa, and
the Middle East.
Preparing for Nasdaq: A Strategic
Approach
We have been diligently
preparing for our uplisting to Nasdaq for two years, a pivotal moment for iQSTEL. We have already met almost all the requirements, including
the establishment of an Independent Board of Directors, Audit Committee, Compensation Committee, Ethics Code Committee, and fulfilling
the shareholders’ equity requirement, among others. The only remaining requirement is achieving the minimum price per share, a matter
we have communicated in detail to our 22,000 shareholders.
In conjunction with the Nasdaq uplisting,
we are implementing several strategic initiatives, including:
- A complete branding
strategy led by a professional marketing agency.
- Consolidating the ownership
of our subsidiaries to create a streamlined business structure.
- Implementing a unified
technological platform to enable synergies, cross-selling, and up-selling across our product and service lines.
These measures are designed to accelerate
our growth and profitability. By reducing costs through platform consolidation and refining our business operations, we anticipate adding
$2 million to our operating income. Simultaneously, our growing revenue base enables us to expand without significant new cost contributions,
leading to an even more rapid increase in our bottom line.
A Bright Future: High-Margin Products
and Strategic Growth
We believe iQSTEL has a brilliant future,
and we are laying the groundwork for sustained success. Over the past few years, we have built a strong business platform, positioning
ourselves to offer additional high-margin products and services to our existing telecom customers. This is the cornerstone of our long-term
strategy to develop high-tech, high-margin products in emerging sectors.
Our efforts are already underway in
key areas like Fintech, Electric Vehicles (EV), and AI-driven services. These products will not only diversify our revenue streams but
also leverage our existing relationships with major telecom clients, creating significant cross-selling opportunities.
Path to $1 Billion in Revenue
Our ambitious business plan projects
iQSTEL achieving $500 million in organic revenue by 2027, with $20 million in operating income. Beyond that, we are actively exploring
a strategic acquisition that could double our business size, positioning us to reach $1 billion in revenue by 2027, with $40 million in
operating income. This strategic acquisition, and being a $1 billion revenue corporation, will serve as catalysts for growth while also
preparing the company for investments in fiber-optic networks, cell towers, data centers, and satellite systems. Our current plan to continue
building and expanding iQSTEL spans the next 20-30 years.
Funding and the Road Ahead
In order to support our vision and strengthen
our balance sheet, we are seeking to raise up to $10 million within the 6 months. These funds will be used in part to restructure existing
debt and reinforce our balance sheet as we prepare for our Nasdaq uplisting. iQSTEL management firmly believes the company is currently
undervalued. Our revenue per share was $0.83 in December 2023, and we expect to reach $1.50 by the end of 2024. With a current trading
price of $0.17 per share, we believe there is a significant opportunity
We are actively selecting an investment
bank to guide us through the final stage of our Nasdaq uplisting and drive our continued growth, positioning us to seize every opportunity
and maximize our potential in the short, mid, and long term.
A Call to iQSTEL’s Future
iQSTEL is at an inflection point, and
the next few years will define our success for decades to come. We are building a company that will not only thrive today but will also
stand the test of time, with a vision to lead in the telecommunications, fintech, EV, and AI spaces.
We genuinely believe that now is the
time to be part of this journey in iQSTEL, as we continue to deliver on our promises and create lasting value for our shareholders. Thank
you for your trust and support.
Sincerely,
Leandro Jose Iglesias
CEO, and Chairman, iQSTEL Inc.
About IQSTEL (updated):
iQSTEL
Inc. (OTC-QX: IQST) (www.iQSTEL.com)
is a US-based, multinational publicly listed company preparing for a Nasdaq up-listing with an FY2023 $144 million revenue,
and with a $290 Million Dollar Revenue forecast and a Positive Operating Income of 7 digits forecast for FY-2024. iQSTEL's mission is
to serve basic human needs in today's modern world by making the necessary tools accessible regardless of race, ethnicity, religion, socioeconomic
status, or identity. iQSTEL recognizes that in today's modern world, the pursuit of the human hierarchy of needs (physiological,
safety, relationship, esteem and self-actualization) is marginalized without access to ubiquitous communications, the freedom of virtual
banking, clean affordable mobility and information and content. iQSTEL has 4 Business Divisions delivering accessibly to the necessary
tools in today's pursuit of basic human needs: Telecommunications, Fintech, Electric Vehicles and Metaverse.
| · | The Enhanced Telecommunications
Services Division (Communications) includes VoIP, SMS, International Fiber-Optic, Proprietary Internet of Things (IoT), and a Proprietary
Mobile Portability Blockchain Platform. |
| · | The Fintech Division (Financial
Freedom) includes remittances services, top up services, Master Card Debit Card, a US Bank Account (No SSN required), and a Mobile App. |
| · | The Electric Vehicles (EV) Division
(Mobility) offers Electric Motorcycles and plans to launch a Mid Speed Car. |
| · | The Artificial Intelligence (AI)-Enhanced
Metaverse Division (information and content) includes an enriched and immersive white label proprietary AI-Enhanced Metaverse platform
to access products, services, content, entertainment, information, customer support, and more in a virtual 3D interface. |
The
company continues to grow and expand its suite of products and services both organically and through mergers and acquisitions.
iQSTEL has completed 11 acquisitions since June 2018 and continues to develop an active pipeline of potential future acquisitions.
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 information 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 partly 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. This press release does not constitute a public offer of any securities for
sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the
United States absent registration or an applicable exemption from registration requirements.
iQSTEL
Inc.
IR US Phone: 646-740-0907
IR Email: investors@iqstel.com
Contact
Details
iQSTEL Inc.
+1 646-740-0907
investors@iqstel.com
Company
Website
www.iqstel.com
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