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IQST - iQSTEL Announces CEO Shareholder Letter Discussing Revenue Growth And Capital Structure Improvements
NEW YORK, Jan. 19, 2021 /PRNewswire/ -- iQSTEL, Inc. (USOTC: IQST) today published a letter from the company CEO, Leandro Jose Iglesias, to shareholders. The letter is included in its entirety, below:
SHAREHOLDER LETTER
January 19th, 2021
Dear Shareholders,
While 2020 was marked by the COVID-19 pandemic, with the closure of companies and countries completely paralyzed, iQSTEL was able to advance in the development of its business plan, reaching a $44.8 Million Preliminary Revenue Benchmark for FY-2020, and having a $60.5 Million Forecast Revenue for FY-2021. This was made possible by having a clearly defined vision and execution plan.
In the course of 2020, we incorporated three new subsidiaries into our business, with the acquisition of Qglobal, LLC and IoT Labs, LLC, and the creation of Global Money One, LLC. These three new companies, combined with our existing subsidiaries (Etelix, SwissLink and ItsBchain) create a portfolio of products and services well beyond just in the telecom arena.
We have also diversified our sources of revenue. Until 2019, 100% of the revenue came from the VoIP wholesale services business. That changed in 2020 where only 44% of our revenue came from VoIP wholesale services and 56% came from SMS services. Revenue diversification is a fundamental part of our business plan, and we expect this to continue in 2021 with:
The successful launch of the Internet of Things (IoT) products, where we recently won the IoT Breakthrough Award as the "Appliance of the Year".
Our entry into the Fintech arena with the release of our Visa Debit Card services through the recent agreement we signed with DTone, which also allows us to manage international remittances and top up off mobile services in 42 countries across the World.
We are focused on a continuous process of value creation for our shareholders, customers, suppliers, and employees. In this sense, our business plan includes gathering all the elements that will allow us to complete a future up-listing to a national exchange.
With that purpose in mind, we have been working on improving our balance sheet. Recently, we announced the discharge of all convertible notes and warrants, and a 48% reduction in total debt. This will be reflected in our first quarter of 2021 financial report.
To mitigate future dilution over the next three years, the company is alternatively pursuing a Reg A registered fund-raising strategy to avoid the potential need of requiring convertible notes or other forms of toxic financing. For this reason, the company summited to the SEC an extension for selling 56 Million shares within the Reg A offering statement (originally qualified by the SEC in December 2019).
At the time the Company submitted the Reg A extension, the 10 cents per share price seemed appropriate. Since then, we have seen a market reaction to recent business progress and a corresponding share price increase in turn closing the gap between our business value and our market cap.
Here is a recap on the most relevant milestones over the previous three months:
1) Signing of a LOI with ALTERNET (ALYI) to develop an IoT Smart EV device to enter the Electric Vehicles Supply Market (Technology Division).
2) Signing of a MOU with PayVMS and the incorporation of a new subsidiary, Global Money One, for the development of our Visa Debit Card (Fintech Division).
3) Execution of the Agreement with DTone for the International Remittance and Top Up Mobile services worldwide. These services will be available through our Visa Debit Card user (Fintech Division).
4) Our Telecom Business surpassed $5 million in monthly revenue for three consecutive months, setting Monthly and Quarterly Revenue Records (Telecom Division).
5) Our IoT Smart Gas winning the "Appliance of the Year" (Technology Division) award as an IoT Breakthrough.
