iQSTEL Issues June 2019 Shareholder Letter (2Q & 3Q Projects)

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NEW YORK, NY , June 24, 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 inform the status of our projects for the second quarter and third quarter of this fiscal year.

Acquisition of SwissLink:

One of the requirements to complete this acquisition is make a full audit of SwissLink. In that sense, we’ve hired 2 international firms to finalize this process.

The first one is a firm that has the responsibility to translate the current SwissLink financial statements prepared under the Swiss accounting standards, into the International Financial Reporting Standards (IFRS), that would be accepted by the SEC due to SwissLink being an offshore company.

The second one is a very large international firm that will audit the SwissLink financial reports under the IFRS.

Our forecast indicates that this process should be done by first half of August. It is important to state that we have had the full cooperation of SwissLink during the whole acquisition process, therefore we do not expect any delays in the process to get the full audit done and finalize the acquisition of the 51% of the capital stock of SwissLink.

Details of this transaction can be found in the Form 8-K filed with the SEC on April 4, 2019.

Etelix Business Plan:

We continue working to reach our estimate forecast of $17 million in gross sales for this FY. In that sense, we will be attending the International Telecom Week (ITW) in Atlanta , on the week of June 24th  where we plan to have more than 50 meetings with customers, partners, and suppliers as Telefonica de España, Telecom Italia, PCCW, Portugal Telecom (Tofane Global), Lycatel, Reliance, Airtel, TATA, Vodafone, Verizon, Entel Chile, Redcasiepac, Hutchinson among others.

In addition, we are planning to attend to the Wholesale World Congress (WWC) in Madrid in September 11th and 12th. In this event, we plan to introduce to our customers, partners and suppliers, our new Europe, Middle East and Asia (EMEA) Sales Director. This position will be based in Spain, raising the number of our team members in Spain up to 9 employees.

Reg-A offering status:

We first filed our Reg-A (Form 1-A) in February 19th, with four amendments having been filed in the following weeks, the last one on June 3rd. Those amendments have been as a result of comments and questions received from the SEC related to the offering and the company.

Specifically in the last SEC’s comment letter received in June 11th, we received three comments, the first one asking for a recalculation of the potential dilution for the investors, adjusting the Net Tangible Book Value.  This is something we have already done, and will incorporate into our next Reg-A amendment.

The second and the third comments are related to the acquisition process of SwissLink, where we were asked to include in the Reg-A, the terms of the acquisition as well as the full audited financial statements of SwissLink in order to comply with the Rule 8-04 of Regulation S-X.

Under this scenario, and based on the forecast we have with respect to the audit process of SwissLink, we estimate we will file a new amendment of the Reg-A by August 2019.

Marketing Plan:

As we previously announced, we have designed a Marketing Plan that seeks to bring higher awareness of our products and services. Is our intention to begin the implementation of this plan once we get the approval of the Reg-A. 

Potential Upgrade to the OTCQB or OTCQX:

The Board of Directors approved an upgrade to OTCQB or OTCQX on December 2018, which we plan to perform this year.  One of the requirements by OTC Markets is having a public share float of at least 10% of the outstanding shares. We will seek to accomplish this through the Reg-A offering.  Additionally, there are some shareholders that have certificates where the restrictive legend is eligible for removal in November under Rule 144, and these shares are expected to be added to the pool of unrestricted stock that will assist in the OTC float requirement. Therefore, we can conservatively that estimate can perform this upgrade this year.

Mergers and Acquisitions:

We plan to keep pursuing strategic vertical and horizontal acquisitions that will allow us to increase our revenue and operating profit, but also by creating cross-selling opportunities with other telecom services as well as administrative and sales synergies.

At the same time, we have been approaching Blockchain projects for Telecommunications, and we believe that by the 3Q – 4Q will be announcing some concrete steps on our Blockchain strategy.

Alternative Funding Options:

Obviously, the Reg-A offering is our main strategy for funding our projects, however in the meantime, we have been exploring other alternative funding options, in order to continue with the execution of our business plan. In that sense, we hired a specialized telecom financing consultant to seek for investors/lenders to finance our projects and acquisitions. We estimate will have results during the 3Q-4Q.

For further details or any question related iQSTEL, Etelix, SwissLink, please feel free to contact us at [email protected].

We would like to express our appreciation and gratitude 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.

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iQSTEL Inc.
IR US Phone: 646-740-0907
IR Email: [email protected]
www.iqstel.com and www.etelix.com

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