IQSTEL projects 4x net income growth, $130M revenue boost from Ultranet acquisition
IQST sits 28% above its 52-week low of $0.933 on light trading volume (0.2× avg).
Summary
IQSTEL announced in a shareholder letter that its binding MOU to acquire a 51% stake in ULTRANET Telecom Group is expected to quadruple its net income from operations. The acquisition is projected to add $4.5 million in annual net income and $130 million in annual revenue, pushing the company above a $500 million annualized run rate. This follows the binding MOU announcement on June 4th and comes after the company reported substantial doubt about its ability to continue as a going concern. The deal is presented as a major step in IQSTEL's strategic pivot to high-margin digital services, leveraging ULTRANET's network to reach 23 million potential users. The acquisition is expected to close in Q3.
At the time of this announcement, IQST was trading at $1.19 on NASDAQ in the Technology sector, with a market capitalization of approximately $7.3M. The 52-week trading range was $0.93 to $10.74. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: PR Newswire.