iQSTEL's Strategic Move with itsBChain: What Shareholders Should Know
iQSTEL's Strategic Sale and Empowering Shareholders
iQSTEL Inc. IQST, a global telecommunications and technology leader, has announced an important move by signing a Memorandum of Understanding (MOU) for the sale of its 100% ownership in itsBChain LLC. This sale represents a significant restructuring effort aimed at enhancing the company's focus on more profitable areas. The purchase agreement is set with Accredited Solutions, Inc. ASII, and it demonstrates iQSTEL's commitment to creating shareholder value.
A Closer Look at the Transaction
Details of the Sale
This strategic decision has iQSTEL monetizing itsBChain, a subsidiary that had not yet generated revenue. The company is set to receive $1 million, a figure that reflects a positive financial outcome as it is greater than the original investment in the subsidiary. Following this, iQSTEL plans to utilize the funds to bolster its financial resilience and aim for improved profit margins moving forward.
The structure of the deal includes:
- $500,000 in ASII preferred shares, which provides a level of security for iQSTEL's investment.
- $500,000 in ASII common shares, which are anticipated to be included in a resale offering with the SEC.
Empowering Shareholders Through Dividends
Part of iQSTEL's commitment to maximizing shareholder value involves distributing ASII common shares as a dividend. This initiative is designed not only to reward existing shareholders but also to enhance the overall liquidity and engagement with the company's future developments.
President & CEO Leandro Iglesias stated, "This transaction marks a key milestone in our strategic roadmap. We are profitably monetizing a non-core subsidiary, strengthening our balance sheet, and simultaneously rewarding our shareholders by distributing a significant portion of the proceeds." Such initiatives speak volumes about the company’s priorities in aligning shareholder interests with its business refining strategies.
Focusing on Core Business Areas
The transaction allows iQSTEL to concentrate on its core high-margin sectors such as Telecom, Fintech, AI, and Cybersecurity. By eliminating a non-essential subsidiary, iQSTEL can effectively streamline its operations to focus on businesses that promise higher returns. Furthermore, the company will retain a 1% lifetime royalty on itsBChain's total sales, which ensures a continued economic interest in the subsidiary, enhancing long-term value.
iQSTEL is actively exploring new pathways for growth through acquisitions and strategic partnerships to solidify its market position as it plans to transition to a major national exchange soon. These endeavors are set to provide ample opportunities for value generation in the coming years.
Looking Ahead: Next Steps for the Company
As negotiations progress, the definitive Purchase Agreement is expected to be finalized soon. This agreement will feature a $250,000 penalty clause to ensure commitment from ASII, proving that both parties are serious about completing this transaction efficiently.
Both iQSTEL and ASII are dedicated to keeping their shareholders updated via official announcements, reflecting their commitment to transparency throughout this process. The strategic direction and the proactive steps taken are manifesting a strong future for iQSTEL.
About iQSTEL Inc.
iQSTEL Inc. is a multinational technology corporation specializing in advanced services in Telecom, Fintech, Blockchain, AI, and Cybersecurity. With operations across 20 countries, the company is projected to achieve $340 million in revenue for FY-2025, thanks to its solid business infrastructure and extensive service offerings aimed at high-value customers.
Frequently Asked Questions
What is the significance of the sale of itsBChain for iQSTEL?
The sale allows iQSTEL to focus resources on more profitable segments while providing liquidity through the transaction proceeds.
How will the dividend distribution work for shareholders?
Shareholders will receive ASII common shares as a dividend, aligning with the company's strategy to enhance shareholder value.
What sectors is iQSTEL focusing on after this transaction?
iQSTEL will concentrate on high-margin sectors, including Telecom, Fintech, AI, and Cybersecurity, to improve profitability.
What commitment do ASII and iQSTEL have toward completing the sale?
A $250,000 penalty clause is included in the purchase agreement to ensure ASII's commitment to the transaction's completion.
What are iQSTEL's projections for FY-2025?
iQSTEL aims to reach $340 million in revenue for FY-2025, reflecting its growth and operational strength in the telecommunications field.
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