IQSTEL Implements Share Buyback Program to Enhance Shareholder Confidence and Growth Prospects

IQSTEL Implements Share Buyback Program

IQSTEL Inc. (NASDAQ: IQST), a fast-evolving multinational player in technology across various sectors including Telecom, Fintech, AI, and Cybersecurity, has unveiled a strategic initiative to repurchase up to one million shares of its common stock. This decision, authorized by the company's Board of Directors, is underpinned by a strong belief that the current market price does not accurately reflect the intrinsic value of the company.

Confidence in Long-Term Strategy

The repurchase program is expected to be partially funded by cash dividends received from QXTEL, one of IQSTEL’s subsidiaries. This initiative manifests the board’s confidence in the company’s strong financial position and its vision for long-term growth. In recent years, IQSTEL has broadened its operations, diversifying into high-growth sectors while consistently enhancing its revenue and reinforcing its balance sheet.

CEO Leandro Iglesias elaborated on the situation, commenting, “We believe the recent decrease in IQSTEL’s share price is not in sync with the true value of our business.” He highlighted that the company has transformed into a formidable organization generating hundreds of millions in annual revenue and holding substantial assets without any outstanding convertible notes or warrants.

Current Market Valuation Mismatch

Iglesias pointed out that the existing valuation fails to capture the company’s operational scale and future potential. The market underestimates IQSTEL's developed commercial framework, which currently serves over 600 telecom operators globally, providing a vast market reach to approximately 2.3 billion end-users. Thus, management sees the share repurchase as a valuable opportunity that aligns with their dedication to shareholder value creation.

Simultaneously, the company announced a Binding Memorandum of Understanding (MOU) to acquire 51% in Ultranet Telecom Group, which is anticipated to catapult IQSTEL’s operational revenue significantly. According to Ultranet’s audited financial records, this acquisition could increase IQSTEL's net income by approximately fourfold, reinforcing its global business stature.

Future Prospects and Strategic Focus

As IQSTEL transitions towards a more lucrative phase centering on expanding EBITDA and profitability, this acquisition is seen as pivotal. It is predicted that the Ultranet transaction could contribute nearly $4.5 million in annual net income, bolstering IQSTEL’s financial standing and enhancing its intrinsic value. The company remains steadfast about addressing the disconnect between market capitalization and its actual business value through strategic initiatives.

Much of IQSTEL's growth strategy is hinged on disciplined capital allocation, comprising not just share repurchase programs but also other strategic acquisitions, enhancing its asset base, and optimizing its operational frameworks.

The detailed terms of the share repurchase program will be communicated in a Current Report on Form 8-K, which is due to be filed with the U.S. Securities and Exchange Commission (SEC). As IQSTEL progresses, they are committed to exploring every viable opportunity to augment shareholder returns and unlock hidden value for investors.

In conclusion, IQSTEL Inc. is on a determined path to solidifying its market standing as a robust technology player while maintaining a steadfast focus on creating exceptional value for its shareholders.