iQSTEL's Strategic Sale of ItsBChain Subsidiary
iQSTEL Inc. (OTCQX: IQST), a prominent telecommunications and technology company, has entered into a Memorandum of Understanding (MOU) to sell its 100% stake in ItsBchain LLC, a blockchain-based subsidiary. This transaction marks a significant step in iQSTEL's strategic roadmap, aimed at enhancing shareholder value while concentrating its resources on areas with high growth potential.
Details of the Transaction
The sale involves Accredited Solutions, Inc. (OTC: ASII), with iQSTEL achieving a total consideration of $1 million for its 75% stake in the subsidiary. This figure exceeds the total investment made by iQSTEL in ItsBchain, thus reflecting a prudent financial maneuver. The MOU is conditioned upon due diligence and finalizing a definitive agreement.
This transaction is structured to distribute $500,000 in preferred shares and $500,000 in common shares of ASII to iQSTEL, ensuring the retention of value while allowing the company to set its sights on more profitable ventures.
Rewarding Shareholders through Dividend Distribution
In a move to bolster investor confidence and align with long-term growth strategies, iQSTEL plans to distribute the common stock of ASII as a dividend for shareholders. By doing this, the company not only rewards its existing investors but also works to improve shareholder engagement and liquidity in the market.
Leandro Iglesias, President & CEO of iQSTEL, emphasized, "This transaction marks a key milestone in our strategic roadmap. We are profitably monetizing a non-core subsidiary, enhancing our financial position, and rewarding our shareholders simultaneously."
Focusing on Core Business Areas
The divestment allows iQSTEL to streamline its focus, investing further in lucrative sectors like Telecom, Fintech, AI, and Cybersecurity. These areas encapsulate iQSTEL's higher-margin business focus, which is essential for long-term profitability and sustainability.
Additionally, iQSTEL will retain a 1% lifetime royalty on ItsBchain's total sales, providing a revenue stream while the company further develops its core competencies.
Future Growth Plans
To maximize their growth potential, iQSTEL is actively seeking new acquisition opportunities, strategic partnerships, and corporate realignments to strengthen its market presence and enhance its valuation as it gears up for an uplisting on a major national exchange.
The definitive Purchase Agreement is expected to be completed in the forthcoming months, accompanied by a $250,000 penalty clause that signifies ASII’s commitment to finalizing the deal. Both companies plan to issue official updates to keep shareholders in the loop on developments related to the transaction.
About iQSTEL Inc.
iQSTEL Inc. (OTCQX: IQST) specializes in providing pioneering solutions across various sectors including Telecom, Fintech, Blockchain, AI, and Cybersecurity. With operations in over 20 countries, the company anticipates significant revenue growth, projecting $340 million in revenue for the fiscal year 2025.
Frequently Asked Questions
What is the main purpose of iQSTEL's recent sale?
The sale aims to enhance shareholder value and focus the company on high-margin sectors.
How much is iQSTEL receiving from the sale?
iQSTEL has agreed on a total consideration of $1 million for its stake in ItsBchain.
What benefits will shareholders receive?
Shareholders will receive common stock in Accredited Solutions, Inc. as a dividend.
What areas will iQSTEL focus on after the sale?
The company plans to focus on Telecom, Fintech, AI, and Cybersecurity.
When will the definitive Purchase Agreement be finalized?
The agreement is expected to be executed no later than July 1, 2025.
