IQSTEL Unveils New Corporate Structure to Enhance Growth and Financial Clarity

IQSTEL Inc. (NASDAQ: IQST), a rapidly expanding telecommunications and technology firm, has announced a significant development in its corporate structure. Effective July 2, 2026, the company has successfully completed the formation of IQSTEL Operating Holdings Inc. ("IOH"), a wholly owned subsidiary aimed at enhancing financial transparency and operational flexibility.

A New Chapter for IQSTEL

The creation of IOH marks a strategic initiative designed not only to streamline IQSTEL's operations but also to prepare the company for a more dynamic future involving mergers and acquisitions (M&A) and the expansion of its digital services. This initiative will provide shareholders with clearer visibility into the company’s finances and operational growth while facilitating access to traditional financing with improved terms.

Importantly, the establishment of IOH does not alter IQSTEL’s existing share structure or the leadership that guides the company. The same Board of Directors and executive management team oversee IOH, which operates under a mirrored structure to IQSTEL, allowing for coordinated decision-making and strategic direction.

Enhancing Financial Transparency

One of the most notable features of the new structure is its potential to enhance financial transparency for stakeholders. By consolidating most of its operating businesses under IOH, IQSTEL creates a clearer, more defined operational platform. This simplification is aimed at making it easier for institutional investors and lenders to evaluate the company's potential, thereby facilitating better financier engagement and terms.

Additionally, the company anticipates that this more transparent setup will enable it to leverage a consolidated asset base—projected at approximately $44.5 million before the closing of a pending acquisition of ULTRANET Telecom Group. After this acquisition, the asset base is expected to rise to around $65.5 million. Such financial strength positions IQSTEL favorably as it seeks to pursue further growth opportunities.

Positioning for Future Growth

IQSTEL's transformation into a diversified telecommunications technology corporation involved not only organic growth but also the strategic acquisition of various technology assets. With the new holding structure, IQSTEL aims to enhance its operational scope, simplify the integration of future acquisitions, and efficiently allocate capital across its various business segments. This restructuring is a critical step towards realizing the company's ambitions in emerging sectors including artificial intelligence, fintech, cybersecurity, and digital health.

As IQSTEL continues to innovate and grow, it now sets its sights on its forthcoming acquisition of ULTRANET Telecom Group, which is projected to contribute approximately $130 million in annual revenue and expand IQSTEL’s operational footprint in Africa. This acquisition marks a significant milestone in IQSTEL's growth trajectory, expected to bolster the company's digital services as it taps into new revenue streams.

Digital Services Expansion

IQSTEL’s future growth also hinges on its digital services strategy, which was launched to provide high-margin technology solutions. The existing telecom platform links over 600 global telecommunications operators, allowing access to approximately 2.3 billion mobile users. Consequently, this extensive network provides an invaluable advantage for distributing IQSTEL’s digital services.

The expansion into AI, cybersecurity, fintech, and digital health through IQSTEL Digital Services is not merely a supplementary effort; it is a core component of the company's strategy moving forward. As revenues from these high-margin services grow, they will contribute significantly to IQSTEL's overall profitability and operational scale.

Management Insights

Leandro Jose Iglesias, President and CEO of both IQSTEL and IOH, remarked, "The launch of IQSTEL Operating Holdings represents one of the most strategically important initiatives in our company's history. It is about building a foundation for future growth. We are not just increasing our size; we are creating a robust corporate framework that will enable us to explore exciting opportunities in the telecommunications and technology sectors worldwide."

With this new structure in place, IQSTEL is not only preparing for the successful integration of ULTRANET but is also laying the groundwork to elevate its business model and deliver consistent value to shareholders. The management is confident that this strategic shift will foster long-term growth and enhance overall operational efficiency.

For further information about IQSTEL Inc. and its initiatives, visit IQSTEL's website.