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iQSTEL, Inc. Earns Qualification To Increase Reg A Offering Price; Positioned To Raise Upwards Of $40 Million (OTCQB: IQST)
iQSTEL, Inc. (OTCQB: IQST) continues to impress on making good on its initiatives. On Thursday, the company announced an SEC Qualification to raise the price per share (PPS) of the 20,200,000 remaining shares available under a Reg-A offering to a minimum of $0.50 and as high as $2.00. The revised qualification enables iQSTEL to raise a potential $40 million and remain a debt free as it makes progress on implementing a number of initiatives.
The capital expected is intended to used to accelerate ongoing merger and acquisition opportunities, drive growth in conjunction with its business plan, and expand the company's five business divisions - Telecom, EV, Fintech, IoT, Blockchain. Notably, the raised capital will increase IQST's shareholder equity value contributing to its planned Nasdaq uplisting.
The better news is that the qualification could add to momentum already in place, making the back half of this year its best ever.
EV Ecosystem Involvement
Those following IQST understand its commitment to earn a valuable space in the billion-dollar EV sector. In May, IQST announced that the company has formed a dedicated Electric Vehicle (EV) Division to further develop its ongoing collaborative efforts between them and Alternet Systems, Inc. (OTCMKTS: ALYI) to extend in place agreements. Further, IQST is working with the MODUS EV design team, collaborating to develop an EV-Battery, IoTSmartEV device, and Motorcycle Dashboard Display.
Beyond that, IQST is in the development stage to build a comprehensive EV battery ecosystem by providing solutions such as Battery Chargers, Battery Management Software, and an integrated Internet of Things. The IQST EV Division will not only benefit ALYI through its investment in dollars and expertise, but will also allow IQST to diversify its portfolio and capitalize on new business opportunities across Africa and Latin America. Further, the collaborative efforts between ALYI and IQST will support the expansion of both companies, with positive news on the EV technology front sure to send valuations higher. Notably, ALYI has been making great developments over the past few months, with 2000 of its electric motorcycles set to be delivered to Kenya in July. Thus, it could be a great next few months for both companies.
Indeed, iQSTEL’s Electric Vehicle division could position the company to expand its business interests quickly. And for those just learning about IQST, there is a lot of firepower behind the investment opportunity in this international telecom services provider.
An International Story
The excellent news is that despite its $0.55 share price, IQST is turning into quite an international telecommunications company. Moreover, as a US-based telecommunications and fintech company, they can provide services to clients across the globe. And those services offer significant advantages over existing solutions and target industries including telecommunications, electric vehicles (EV), liquid fuel distribution, chemicals, and financial services, with operations currently taking place in over 13 countries. Since 2020, IQST has enjoyed impressive revenue growth, and 2021 is setting up to deliver record-setting results.
In what may be a substantial revenue driver in the back half of this year, IQST recently launched its Mobile Number Portability Application (MNPA) Blockchain Platform, itsBchain. The itsBchain MNPA streamlines the process of switching mobile network carriers while retaining the same phone number, a procedure that often requires the involvement of a third party and significant waiting periods. At the core of this solution is its ability to bring more power to the user and network providers. Specifically, it allows all parties to jump logistical hurdles by allowing users to switch networks while keeping their same phone number in just three taps on a smartphone.
This product and service could be a revenue-generating game changer for the company, particularly in worldwide markets where border crossings and varying carrier availability are common. Advantages of the MNPA platform is flexibility, cost and time efficiency, and increased security benefits both mobile network operators and their customers. As everybody knows, keeping the same phone number is critical for anybody conducting day-to-day business, and IQST is providing a transformational solution to clients all over the world by eliminating the hassles of conventional number migration procedures.
The opportunity for IQST is substantial. The MNPA platform as a service (PaaS) targets a market estimated at $530 million annually. And IQST only wants a part of it. Y wanting a part doesn't mean small. They believe they can generate upwards of $25 million per year during the next three years from MNPA alone. That clock is already ticking, which is greet news for IQST and its shareholders.
The release of its Visa Debit Card services under the brand name Visa Money One (VIMO) is another milestone reached. IQST brands VIMO as more than just a debit card- offering a comprehensive banking platform that includes various financial services such as the ability to open a US Bank Account, make a Mobile Wallet payment, and more. One of the most exciting features of the Visa Money One platform is that it will allow users to purchase and sell cryptocurrencies, capitalizing upon the rapidly growing public interest in the crypto industry.
And by making it simple to purchase and sell cryptocurrencies on the VIMO platform, IQST is well positioned to soon join the ranks of other applications that have made billions by simplifying investment processes. Not only does the platform extend its client reach, IQST estimates that the platform could generate over $128 million in revenues over the next five years. Combine that with its other initiatives such as the itsBchain MNPA platform, the second half of 2021 could bring unprecedented growth for IQST.
A Surge Expected 2H 2021
Heading into the back half of 2021, IQST looks better positioned than ever to capitalize on several diversified market opportunities. The increase to its Reg A could add more firepower to its mission. And with its MNPA platform, the launch of Visa Money One, and the new opportunities offered by its EV collaborations with ALYI, IQST is indeed on track to achieve substantial growth in the weeks and quarters.
Thus, while share prices are churning at $0.55, expect that ceiling to get raised as the overhang from a closely price Reg A dwindles. And with IQST expected to generate $60 million in revenues this year, a valuation on a revenues multiple alone could put current prices in the rear view mirror.
Still, that's only one of many reasons that make investment consideration compelling at these levels.
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