iQSTEL Closes Up to $3M Secured Notes at 18% to Fund Ultranet Deal
IQST is trading near its 52-week low of $0.851 (2.0% below the low).
Summary
iQSTEL closed the first $1.5 million tranche of up to $3 million in two-year senior secured, non-convertible notes at 18% interest, secured by a first-priority lien, plus 420,000 pre-funded warrants, to fund its planned 51% Ultranet acquisition.
Key Events · Financing and Capital Events · IQST
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Up to $3M Secured Notes Closed
Two senior secured, non-convertible notes of up to $1,500,000 each were issued to M2B Funding Corp. and ADI Funding LLC; Tranche A of $750,000 per purchaser funded October 20, 2026, with Tranche B of up to $750,000 per purchaser due on or before December 1, 2026.
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18% Cash Interest, 24-Month Amortization
Interest accrues at 18% per annum payable monthly in cash; each tranche repays in four equal installments of 25% of funded principal ($187,500 per tranche) at six, twelve, eighteen and twenty-four months, maturing 24 months after funding.
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First-Priority Lien on Assets
A Security Agreement grants the lenders a first-priority security interest in substantially all assets, with M2B as Collateral Agent; default triggers a 24% rate and acceleration at 120% of outstanding funded principal.
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420,000 Pre-Funded Warrants Issued
Warrants for 210,000 shares per purchaser (420,000 total) at a $0.0001 exercise price were fully earned at the initial closing regardless of whether Tranche B funds, with 4.99% ownership blockers and piggyback registration rights.
Analysis · IQST · Technology
iQSTEL raised up to $3 million in two-year senior secured notes carrying 18% cash interest — expensive money for a company that reported a going concern warning in its August 10-Q. The structure is deliberately non-convertible, so there is no death-spiral conversion feature, but the trade-off is a first-priority lien on substantially all assets plus 420,000 pre-funded warrants at $0.0001 that are already earned. Only $1.46 million net hit the balance sheet in Tranche A; the second $1.5 million depends on the lenders clearing conditions by December 1, 2026. The cash is earmarked for the 51% Ultranet acquisition, which management says would add $130.9 million of 2025 revenue and $5.0 million of EBITDA and make the consolidated company cash-flow positive — but the share purchase agreement is not signed and closing is targeted for mid-Q1 2027, so the debt service clock starts well before the deal does.
How filings like this one have moved
In the 30 days to Oct 26, 2026, 36.2% of the 898 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.75%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, IQST was trading at $0.83 on NASDAQ in the Technology sector, with a market capitalization of approximately $9.4M. The 52-week trading range was $0.85 to $6.54. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.