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IQST - iQSTEL Finalizes and Closes QXTEL Acquisition Taking Forecasted Annual Revenue to Quarter of a Billion and One Step Closer to Nasdaq
NEW YORK, April 4, 2024 /PRNewswire/ -- iQSTEL Inc. (OTC-QX: IQST) announced the completion and closing of the acquisition of 51% of QXTEL LTD. ("QXTEL") on
About this update from Iqstel Inc.
[{"type":"text","content":"NEW YORK, April 4, 2024 /PRNewswire/ -- iQSTEL Inc. (OTC-QX: IQST) announced the completion and closing of the acquisition of 51% of QXTEL LTD. (\"QXTEL\") on April 1st, 2024. The acquisition agreement was originally announced on January 22, 2024 and leading up to the closing of the acquisition, a Pro Forma financial statement was published on February 8, 2024. \n\n \n \n \n \n \n \n\n \niQSTEL has officially acquired 51% of QXTEL making it an iQSTEL subsidiary.\nThe addition of QXTEL to the iQSTEL group of companies will have a positive impact on the organization's operational results. In terms of Revenue, QXTEL will add an estimated $20 million in revenue per quarter, and will also add close to an additional $1 million per quarter in Gross Profit. We further estimate a significant contribution to the Operating Income of more than $400 thousand per quarter, and an additional $300 thousand in Net Income per quarter. QXTEL substantially bolsters IQSTEL's already solid foundation as demonstrated in the latest financial reports.\nIn addition to the positive contributions to IQSTEL's operating results, QXTEL also improves IQSTEL's Balance Sheet with an increase in total assets of over 54% to a total of approximately $39 million, resulting in a Stockholder's net equity increase of 15% to a total of more than $9 million. IQSTEL's post acquisition net equity is now practically double the minimum necessary to qualify for Nasdaq.\nPromptly following the execution of the acquisition agreement on January 22, 2024, we started working as a team incorporating QXTEL with the rest of the IQSTEL subsidiaries, attending regular staff meetings, and coordinating synergies.\nThe QXTEL acquisition is a major milestone for iQSTEL, marking the company's official acquisition of one of the most elite wholesale telecom companies with over a quarter billion in revenue.\niQSTEL has started 2024 with record growth in the first quarter and with a history of delivering sales in the second half of the year greater than the first half of the year.\niQSTEL filed on Monday April 1st its 2023 annual earnings report showing that the company has achieved profitability since Q3, 2023. We are forecasting sustained profitability in going forward.\nIQSTEL management is now targeting a short-term financial goal in the company's Operating Income to $0.5 million per Quarter...