iQSTEL Closes $3M Non-Convertible Debt Tranche for 51% Ultranet Stake, Targets Cash-Flow Positive
IQST is trading near its 52-week low of $0.862 (5.8% above the low) on light trading volume (0.1× avg).
Summary
iQSTEL closed the first tranche of financing for its planned 51% acquisition of Ultranet Telecom Group: up to $3 million in two-year senior secured notes that cannot convert into equity, plus pre-funded warrants for up to 420,000 shares. The notes carry 18% annual interest paid monthly and amortize 25% of principal every six months. Ultranet is the substance here — $130.9 million of 2025 revenue (up 30%), $5.0 million EBITDA and $4.6 million net income across six West African markets. Management expects the deal to lift the company to roughly $9 million in annualized adjusted EBITDA and make it cash-flow positive on a consolidated basis, a meaningful claim given the going-concern warning in the August 10-Q. The structure avoids conversion dilution, but the 18% coupon and secured status mean real cash obligations before any revenue arrives. The Share Purchase Agreement is expected in November 2026 with closing targeted for mid-Q1 2027, so the acquisition is not yet signed.
At the time of this announcement, IQST was trading at $0.91 on NASDAQ in the Technology sector, with a market capitalization of approximately $9.9M. The 52-week trading range was $0.86 to $6.56. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.