New York, NY, May 11, 2022 (GLOBE NEWSWIRE) — iQSTEL, Inc. (OTCQX: IQST) today released a shareholder update from CEO Leandro Iglesias. The update highlights the company’s cash reserve which insulates it from the prevailing bear market, providing iQSTEL with the necessary resources it needs to continue on the path to achieving its revenue forecast of 90 million. dollars for 2022 and its Nasdaq listing. The CEO update is included in full below:
Let me start by saying that IQSTEL is better than ever, better than yesterday, better than last week, better than last month, better than last year.
The company has more cash in the bank than ever. We have sufficient cash to continue executing our business plan to include our ongoing merger and acquisition campaign. Our cash reserve is sufficient to support our business plan throughout this year and next year.
iQSTEL financial indicators continue to show positive trends. We remain on track to meet or exceed our revenue guidance of $90 million and our positive net income target.
Today’s market is marked by worry and uncertainty. With inflation and war dominating the headlines, shareholder concerns are understandable. Tech stocks that often rely on access to capital to fund their growth can take particular hits in a bear market. The good news for iQSTEL shareholders is that we are not one of those technology stocks that currently depend on access to capital. We were lucky enough to fund our business plan last year before the current market chaos.
Let me share with you a good cause for optimism at iQSTEL even in these rainy days.
Let’s start with iQSTEL’s underlying core offering – Connectivity and Mobility. Our core offering is essential to the routine conduct of modern life. We all need to be connected with our families, friends, work, banks and communities now more than ever. Due to this growing need for modern connectivity, our Voice and SMS business continues to grow daily.
Modern society is more connected than ever and more mobile than ever. People expect to be seamlessly connected with complete freedom of mobility. Our connected electric motorcycles and our MasterCard Fintech ecosystem are excellent mobile and connected solutions for the modern world as high quality products at competitive prices.
Our Telecom business is the aircraft carrier of the iQSTEL fleet of mobile and connected solutions. The iQSTEL Telecom Division is on track to achieve the best year since its inception. Our six telecommunications subsidiaries (Etelix, SwissLink, QGlobal SMS, IoTLabs, Smartbiz and Whisl) are increasing their revenues, increasing their gross margin and contributing to an increase in the bottom line, while achieving increasingly high customer recognition.
We recently announced the acquisition of Smartbiz and Whisl which are expected to add $11.6 million in revenue and $1.34 million in positive net profit to our existing revenues and revenues. In both cases, we acquired them by paying with a combination of cash and six-month IQST restricted common stock. The restricted stock payment demonstrates the strength of iQSTEL’s stock.
As I write this letter, iQSTEL is participating in International Telecommunications Week (ITW) in Washington DC. ), Verizon, Telecom Italy, Belgacom, Cable and Wireless and iBasis.
iQSTEL’s reputation allows us to engage with the largest telecommunications companies in the world. It is reasonable to expect these meetings to make a substantial contribution to the organic growth of iQSTEL throughout the remainder of this year and beyond.
Shareholder confidence is expected to be further boosted by iQSTEL’s new product developments. Our new EV Motorcycles (EVOSS), MasterCard Fintech Ecosystem (MAXMO) and Internet of Things (IoTSmart Gas/Tank) solutions are all fully developed, market tested and ready to generate high margin revenue.
Our first batch of EVOSS EV motorcycles received excellent feedback from customers. We are now working on the commercial launch in 4 countries this year.
We announced our first business partnership with the MasterCard Fintech ecosystem and are currently working on three additional partnerships that should accelerate the rapid growth of our MasterCard Fintech ecosystem.
Our IoTSmartGas/Tank has been deployed with a Fortune 500 chemical company customer. We plan to announce the results of this first deployment soon and then launch a global sales and marketing campaign.
We have not deviated from our Nasdaq listing target. I have no doubt that iQSTEL should and can be a Nasdaq listed company. We remain committed to pursuing our Nasdaq listing goal.
We also remain committed to achieving the Nasdaq minimum listing price organically without reverse consolidation. If we were considering a consolidation, shareholders would know because a vote would be required, and management would have to formally communicate (proxy) with shareholders to seek approval for a consolidation. Shareholders have received no such formal communication and management has not prepared any.
The bears will not rule the market forever. Inflation will eventually be brought under control and the prospects for a peaceful settlement in Ukraine will improve. While iQSTEL’s strength may be overlooked in the current bear market, our continued growth towards our $90 million revenue forecast for 2022 will be hard to ignore in a market more conducive to bullish sentiment.
The longer it takes for bullish sentiment to regain a foothold in the market, the more time iQSTEL has to demonstrate revenue growth and improved profit margins.
Since iQSTEL has the necessary cash reserve to support its growth objectives through 2022 and into 2023, we will wait out this bear market and, if necessary, postpone our Nasdaq listing until that bullish sentiment returns and that our yet unrecognized underlying value can be reflected in our share price.
I argue that iQSTEL’s current share price performance is more impacted by the current market than the company’s underlying performance. I encourage shareholders to keep an eye on our underlying performance and know that our cash reserve can support continued performance throughout the year and into the year after. Remain bullish on the impact iQSTEL’s underlying performance may have on the company’s share price once bearish market sentiment fades.
The best is yet to come.
All my wishes
President and CEO
iQSTEL inc. (OTCQX:IQST) (www.iQSTEL.com) is a publicly traded US company with an independent board of directors and an independent audit committee offering industry-leading services through its two business divisions and each with independent brands. The B2B division, Brand IQSTelecom offering services of telecommunications platforms, Internet of things, technology and blockchain, the target market of the B2B division is Global Markets. The B2C division, Brand EVOSS offering EV electric motorcycles, Fintech Ecosystem, the target market for this business division is Latin America and Spanish speaking people in the United States. The company is present in 15 countries and its products and services are used in several industries such as telecommunications, electric vehicles (EV), financial services, chemicals and the distribution of liquid fuels. IQSTEL announced on February 17, 2021 that it has become a debt-free company and is now completely debt-free with no convertible notes, warrants, promissory notes or settlement agreements on its balance sheet.
Safe Harbor Statement: Statements in this press 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 other statements regarding our future business 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 results could and do differ materially from what is expressed or anticipated in the forward-looking statements due to numerous factors. All forward-looking statements speak only as of the date of this press release and iQSTEL Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release. This press release does not constitute a public offer to sell securities. Any privately offered securities 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.
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Source: iQSTEL Inc. and its subsidiaries: www.iqstel.com