IQST – iQSTEL Receives Formal Offer For EV Subsidiary From Pre-IPO Company
New York, NY, June 08, 2022 (GLOBE NEWSWIRE) -- iQSTEL, Inc. (OTCQX: IQST) today announced that the company has received a formal offer to purchase iQSTEL’s entire electric vehicle (EV) subsidiary. The offer values iQSTEL’s EVOSS Electric Vehicle operation substantially higher than iQSTEL’s internal valuation. The buyer is a US company that has filed an S-1 for an initial public offering (IPO) on Nasdaq. The iQSTEL CEO, Leandro Iglesias addresses the offer in detail in a letter to shareholders included in its entirety below:
I am pleased to share with you that we received an attractive offer for the sale of our Electric Motorcycle Business Division, EVOSS. A US company that has filed an S-1 to list in an IPO on Nasdaq has made a formal offer at a valuation that substantially exceeds our internal valuation of EVOSS. The proposed transaction will be subject to due diligence and the approval of Nasdaq.
iQSTEL Management and the Independent Board of Directors consider the proposed acquisition a validation of the value of our company’s electric vehicle business. The offer to acquire iQSTEL’s electric vehicle business independent of iQSTEL’s telecommunications business also demonstrates that it may be in the best interest of iQSTEL shareholders for the company to pursue separate Nasdaq listings for its telecommunications and electric vehicle businesses. However, iQSTEL Management and the Board of Directors believe it would be best to pursue such independent Nasdaq listings directly and separate from any merger and acquisition in order to minimize any potential dilution to the iQSTEL shareholders and optimize the market valuation of each separate business. Accordingly, iQSTEL Management and the Board of Directors has decided to decline the subject offer.
Alternatively, the iQSTEL Independent Board of Directors has approved a strategy to begin exploring a spinoff and independent Nasdaq listing of the EVOSS Electric Vehicle business operation. Management and the Board of Directors believe iQSTEL’s telecom operations (IQSTelecom) may be eclipsing the value of the company’s EVOSS Electric Vehicle business operation. The potential separation of the two businesses would be intended to enhance the ultimate value of each business by allowing each business to be valued as a pureplay within its specific market.
iQSTEL is early on in the exploration of a possible EVOSS spinoff strategy. The final spinoff strategy may include mergers and acquisitions as part of an overall strategy to grow and independently list the EVOSS business on Nasdaq.
In the meantime, iQSTEL continues in the execution of the existing EVOSS Electric Vehicle growth strategy. Plans for a second batch of electric motorcycles are underway and the company continues to develop dealer and partner relationships in an expanding list of countries.
I would like to end this shareholder update with a reminder that iQSTEL is positioned to endure the prevailing market conditions and continue in the execution of our plan to achieve $90 million in revenue this year with positive net income. We have adequate cash to avoid any fundraising until next year. We are continuing to prepare for a Nasdaq up-listing and will look for an opportunity to do so when market conditions can support an organic increase in iQSTEL’s share price to the Nasdaq minimum listing standard. In light of the proposal we received for the EVOSS operation, iQSTEL can present a strong argument that it has considerable underlying value yet unrecognized by the market place. I remain confident in iQSTEL’s future and that the best is yet to come.
About iQSTEL Inc.:
iQSTEL Inc (OTCQX: IQST) (www.iQSTEL.com) is a US-based publicly-listed company offering leading-edge Telecommunication, Technology and Fintech Services for Global Markets, with presence in 13 countries. The company provides services to the Telecommunications, Electric Vehicle (EV), Liquid Fuel Distribution, Chemical and Financial Services Industries. iQSTEL has 4 Business Divisions: Telecom, Technology, Fintech and Blockchain, with worldwide B2B and B2C customer relations operating through its subsidiaries: Etelix, SwissLink, QGlobal SMS, SMSDirectos, IoT Labs, Global Money One and itsBchain. The Company has an extensive portfolio of products and services for its clients: SMS, VoIP, 4G & 5G international infrastructure connectivity, Cloud-PBX, OmniChannel Marketing, IoT Smart Electric Vehicle Platform, iQ Batteries for Electric Vehicles, IoT Smart Gas Platform, IoT Smart Tank Platform, Visa Debit Card, Money Remittance, Mobile Number Portability Application MNPA (Blockchain Platform) and Settlement & Payments Marketplace (Blockchain Platform).
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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